Suppose that changes in bank regulations expand the availability of credit cards, so that people need to

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Suppose that changes in bank regulations expand the availability of credit cards, so that people need to hold less cash.

a. How does this event affect the demand for money?

b. If the central bank does not respond to this event, what will happen to the price level?

c. If the central bank wants to keep the price level stable, what should it do?

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Economics

ISBN: 124344

2nd Edition

Authors: N. Gregory Mankiw

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Question Posted: Nov 02, 2024 07:00 AM

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Suppose that changes in bank regulations expand the availability of credit cards, so that people need to

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Economics

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