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Money Market Graphs. Please write down the prompts and graph. This will be turned in. Be sure to label everything!. Money Market Supply Shift. 1. The unemployment rate is 2%. Inflation is at 8%. A. tight or easy? B. ir ↑ or ↓ ? C. MS ↑ or ↓ ? D. inflation ↑ or ↓ ?
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Money Market Graphs Please write down the prompts and graph. This will be turned in. Be sure to label everything!
Money Market Supply Shift • 1. The unemployment rate is 2%. Inflation is at 8%. • A. tight or easy? • B. ir ↑ or ↓ ? • C. MS ↑ or ↓ ? • D. inflation ↑ or ↓ ? • E. unemp ↑ or ↓ ?
Money Market Supply Shift • 2. Consumer spending has dropped and unemployment is at 9%. • A. tight or easy? • B. ir ↑ or ↓ ? • C. MS ↑ or ↓ ? • D. inflation ↑ or ↓ ? • E. unemp ↑ or ↓ ?
Money Market Supply Shift • 3. Business investment has slowed considerably. • A. tight or easy? • B. ir ↑ or ↓ ? • C. MS ↑ or ↓ ? • D. inflation ↑ or ↓ ? • E. unemp ↑ or ↓ ?
Money Market Demand Shift • 4. More and more people are using credit cards instead of cash. • A. demand will ↑ or ↓ ? • B. ir ↑ or ↓ ? • C. Q of money ↑, ↓ or stay the same?
Money Market Demand Shift • 5. Suddenly people are running to the banks to take out their money to buy gold. • A. demand will ↑ or ↓ ? • B. ir ↑ or ↓ ? • D. Q of money ↑, ↓ or stay the same?