Suppose that the money market is initially in equilibrium

Reference no: EM1337169

Money market equilibrium

1. Assume that the money market is initially in equilibrium for an economy. Explain with the aid of a diagram how the market adjusts to
(i) an increase in money supply (ii) an increase in real GDP

2. Choose any economy in the world.
What measures did the countryâ??s central bank adopt in the 2008 period, in the face of the worsening global financial crisis? Name 2-3 key measures & describe briefly how it was implemented.
Which of these measures were effective? Which ones were not? Provide an economic explanation of why do you think so.

Reference no: EM1337169

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