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Macroeconomics 5th Edition by Olivier Blanchard
Edition 5ISBN: 978-0132159869Macroeconomics 5th Edition by Olivier Blanchard
Edition 5ISBN: 978-0132159869 Exercise 8
Explain how each of the developments listed in (a) through (d) would affect the demand for M 1 and M 2. a. Banks reduce penalties on early withdrawal from time deposits.
b. The government forbids the use of money market funds for check-writing purposes.
c. The government legislates a tax on all ATM transactions.
d. Congress decides to impose a tax on all transactions involving government securities with maturities of more than one year.
b. The government forbids the use of money market funds for check-writing purposes.
c. The government legislates a tax on all ATM transactions.
d. Congress decides to impose a tax on all transactions involving government securities with maturities of more than one year.
Explanation
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Verified
(a) If banks reduce penalties on early w...
Macroeconomics 5th Edition by Olivier Blanchard
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