Business, 05.12.2019 18:31 Lucialari4345

In the early 1980s, new legislation allowed banks to pay interest on checking deposits, which they could not do previously. if we define money to include checking deposits, this money demand. if the federal reserve had maintained a constant money supply in the face of this change, this would the interest rate, aggregate demand and aggregate output. to have maintained a constant market interest rate (the interest rate on nonmonetary assets) in the face of this change, the federal reserve would have had the money supply. as a result, aggregate demand and output would .

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In the early 1980s, new legislation allowed banks to pay interest on checking deposits, which they c...