Ask Question
10 April, 20:49

Suppose a computer virus disables the nation's automatic teller machines, making withdrawals from bank accounts less convenient. as a result, people want to keep more cash on hand, increasing the demand for money. assume the fed does not change the money supply. according to the theory of liquidity preference, the interest rate, which causes aggregate demand to. if instead the fed wants to stabilize aggregate demand, it should the money supply by government bonds.

+2
Answers (1)
  1. 11 April, 00:07
    0
    If the bank chooses to stabilize the money supply without releasing more money, then it should allow bonds that can be circulated. It can also allow another form of transaction that will be used by people to spend their cash without withdrawing too much.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Suppose a computer virus disables the nation's automatic teller machines, making withdrawals from bank accounts less convenient. as a ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers