Money Demand and Price Level

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Money Demand and Price Level By Student name

Article: Chinese Cash in on New Land Opportunities Source: USA TODAY; World Section, Pg. 14A "The overhaul formalizes a practice that has already been going on in many parts of the country. It comes at a time when China's rapid economic growth is driving up food prices worldwide, forcing the government to look within its own borders to meet demand. "

Original Demand for Money NIR MS0 Nominal Interest Rate (percent per year) EIR0 MD0 QM EQM0 Quantity of Money

New Demand for Money NIR QM MS0 EIR1 EIR0 MD0 EQM0/EQM1 Nominal Interest Rate (percent per year) EIR1 EIR0 MD0 QM EQM0/EQM1 Quantity of Money

China’s Money Market NIR QM MS0 EIR1 EIR0 MD1 MD0 EQM0/ EQM1 Nominal Interest Rate (percent per year) EIR1 EIR0 MD1 MD0 Experiencing increase in MD due to economic growth QM EQM0/ EQM1 Quantity of Money

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