Question 1
Use the money demand and money supply model to show graphically and explain the effect on interest rates of the Federal Reserve's open market sale of Treasury securities.
Question 2
Use the money demand and money supply model to show the money market in equilibrium with an interest rate of 5 percent and the quantity of money of $800 billion. Suppose the Federal Reserve increases the money supply to $850 billion. At the previous equilibrium interest rate of 5 percent, will households and firms now be holding more money or less money than they want to hold, and will they be buying or selling short-term financial assets? At the new equilibrium interest rate, households and firms will desire to hold the entire $850 billion of the money supply. What causes households and firms to want to hold the additional $50 billion of the money supply?
The Keynesian IS/LM Model
A summary model of the regulation of gonadal hormones.
Model of cI repressor binding to DNA
The Malthusian Model
Effect of “Moral Restraint” in the Malthusian Model
Testing the arterial supply to the lower extremities