Unformatted text preview: Take out a separate sheet of paper for each of these and draw (using color if you prefer): 1. An increase in money supply (What could cause this change?) 2. An increase in money demand (What could cause this change?) 3. An increase in the investment curve. (What could cause this change?) 4. An increase in the savings curve. (What could cause this change?) This exam is not particularly long, but if you spend most of your time trying to decipher these graphs because you did not have a good handle on how they work, you can potentially waste a lot of time. You will be scored on the open ended questions based on your demonstration that you understand the concepts. You should know what money neutrality is as well as how to demonstrate it. You should know how the government seeks to affect the macroeconomy through both fiscal and monetary policy....
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- Fall '07