Questions from Macroeconomics

Q: How is money market equilibrium determined in the short run?

How is money market equilibrium determined in the short run?

Q: What is the quantity theory of money?

What is the quantity theory of money?

Q: How is the velocity of circulation calculated?

How is the velocity of circulation calculated?

Q: What is the equation of exchange?

What is the equation of exchange?

Q: Does the quantity theory correctly predict the effects of money growth on

Does the quantity theory correctly predict the effects of money growth on inflation?

Q: Money in Canada today includes which of the following items? Cash

Money in Canada today includes which of the following items? Cash in CIBC’s cash machines; Bank of Canada dollar bills in your wallet; your Visa card; your loan to pay for school fees.

Q: The People’s Bank of China announces it will cut the required reserve

The People’s Bank of China announces it will cut the required reserve ratio. Explain how lowering the required reserve ratio will impact banks’ money creation process.

Q: Suppose that yesterday the Canadian dollar was trading on the foreign exchange

Suppose that yesterday the Canadian dollar was trading on the foreign exchange market at 0.75 euros per Canadian dollar and today the Canadian dollar is trading at 0.80 euros per Canadian dollar. Whic...

Q: Suppose that the exchange rate fell from 80 yen per Canadian dollar

Suppose that the exchange rate fell from 80 yen per Canadian dollar to 70 yen per Canadian dollar. What is the effect of this change on the quantity of Canadian dollars that people plan to buy in the...

Q: Suppose that the exchange rate rose from 80 yen per Canadian dollar

Suppose that the exchange rate rose from 80 yen per Canadian dollar to 90 yen per Canadian dollar. What is the effect of this change on the quantity of Canadian dollars that people plan to sell in the...