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money demand 上升 (Mt , Ma) 會有咩結果?

發問:

money demand 上升 (Mt , Ma) 會有咩結果?

最佳解答:

Given fixed money supply, an increase in money demand will boost up the interest rate for every national income level. So the LM curve shifts to the left. When LM curve shifts to the left and interest rate rises, investment falls. The aggregate expnediture falls and through multipler effect, national income falls as well. So under IS-LM framework the interest rate rises while national income falls. This answer is based on the short run and closed economy assumption.

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