Economics, Ch. 34: Interest Rates and Monetary Policy, economics homework help

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Question Description

Answer each question, min of 200 words for each question, APA format;

1. How is the equilibrium interest rate determined in the market for money?

2. What are the goals and tools of monetary policy?

Reference:

McConnell, C., Brue, S., & Flynn, S. (2015). Economics Principals, Problems, and Policies (20th ed.)

Tutor Answer

ProfessorEmily
School: Duke University

Attached.

Running head: INTEREST RATES AND MONETARY POLICY

Interest Rates and Monetary Policy
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1

INTEREST RATES AND MONETARY POLICY

2

Question 1:
The quantity of the money supply and demand in the economy is determined by the
equilibrium interest rate (r) in the money market. An equilibrium in the money market is attained
when the demand quantity of real balances is equal to the supply of real money balances. If this
interest rate is less than equilibrium the demand of money will be higher than that of the supply.
This means that people will sell bonds, increasing the supply of bonds whi...

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Review

Anonymous
Tutor went the extra mile to help me with this essay. Citations were a bit shaky but I appreciated how well he handled APA styles and how ok he was to change them even though I didnt specify. Got a B+ which is believable and acceptable.

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