1. Money Demand and Price LevelBy
Student name

2. 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. "

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

4. 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

5. 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