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- Write a money demand function and explain the determinants of money demand.Explain the relationship between the effectiveness of monetary policy and the interest elasticity of money demand. Will the monetary policy be more or less effective the higher the interest elasticity of money demand? Explain.Using the appropriate diagram, show and explain the effect of the increase in income taxes on the equilibrium in the money market.
- Explain the relationship between the effectiveness of monetary policy and the interest elasticity of investment. Will the monetary policy be more or less effective the higher the interest elasticity of investment demand?what are the componets of money demand , according to marshal and fisher ?Why Inflation is referred as monetary phenomena. explain using graphs
- discuss how money supply is determine by the central bank and economics activitiesMONETARY INSTITUTIONS (chapter 17) Why is the money multiplier considered to be a potential multiplier rather than an indication of exactly how much multiplication should be expected? Note: please do not give a copy & paste answer from Chegg. or course hero thanks for helpingExplain with the help of a diagram how monetary policy might destabilize an economy.