
How does an increase in the general price level affect the demand for money?
What effect does a decrease in the general price level have on the demand for money?
What happens to the money demand curve if the central bank decreases the money supply?
Analyze the effect of a central bank increasing the money supply on interest rates and the money demand curve.
If the interest rate in the economy rises from 3% to 7%, what is likely to happen to the quantity of money demanded?
Consider the historical increase in price levels from the 1950s to today. How would this affect the money demand curve?
Evaluate the impact of a technological advancement that reduces transaction costs on the money demand curve.
Analyze the effect of a decrease in interest rates on the opportunity cost of holding cash.
Evaluate the relevance of the theory of liquidity preference in today's digital economy.
Evaluate the impact of a decrease in interest rates on the opportunity cost of holding cash.