What do economists mean when they say that there is an "excess supply of money" in the economy? Illustrate this situation graphically. If there is an excess supply of money, what happens to the interest rate? How does the change in the interest rate influence the trade-off between holding money and holding bonds?
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Q57: Label each of the following events as
Q58: Q59: Why is the money supply curve discussed Q60: What is meant by the term "excess Q61: Assume the money market is initially in Q63: Explain what is meant by the "transactions Q64: Answer the following three questions dealing with Q65: Use a graph to illustrate the effect Q66: What is meant by the term structure Q67: Graphically demonstrate the effect on the interest
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