Equilibrium in the Money market will change if there is ?
Correct answer: D. any of the above
- A. a change in the real money supply
- B. a change in real income
- C. a change in competition in the banking industry
- D. any of the above
Explanation
Money-market equilibrium depends on both real money supply and money demand; real income shifts demand, while banking competition can affect the public's preferred money holdings and deposits. Thus each listed change can alter the equilibrium.
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The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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