✔ 最佳答案
Real Money supply= Ms / P
where Ms=money supply
p= price level
Money demand= Md(Y , R)
where Y is the real income of residence
R is the nominal interest rate
a) increase in price level, P. So the real money supply decrease , money supply curve shifts to the left. Norminal interest rate will increase and equilibrium quantity of money will decrease. Money demand curve will not shift, it just move along.
b) increase in real output= increase in real income= increase in Y
So money demand curve shifts to the right and norminal interest rate decrease
Equilibrium quantity of money increases
Money supply will not shift but only money demand.
c) i am not sure what's mean by "money's ability" but i intrepret it as the velocity of money, that means its ability to flow through the economy. it is possible that it stands for its purchasing power, i don't know. You better clearify.
d) Increase in market interest rate= increase in nominal interest rate= increase in R
The effect is ambiguous. Becasue either a decrease in money supply or an increase in money demand can cause R to increase. So there will be no shifting for money demand if it was the first case and there will be a shift if it was the second case.