1.1. Explain how each of the following would affect the quantity of money demanded. Does the change cause a movement along the money demand curve or a shift of the money demand curve?

a. Short-term interest rates rise from 5% to 30%.

b. All prices fall by 10%.

c. New wireless technology automatically charges supermarket purchases to credit cards, eliminating the need to stop at the cash register.

d. In order to avoid paying taxes, a vast underground economy develops in which workers are paid their wages in cash rather than with checks.