Question 1. The Estonian government decides to enact one of the following strategies to current interest rates and the money supply:

money supply increase and interest rates increase;

money supply increase and interest rates decrease;

money supply decrease and interest rates increase;

money supply decrease and interest rates decrease.

In each case, state what will happen in both the short-run and long-run.

Opinions are nice, but will not be accepted. Support your results with equations and graphs!

Question 2. Estonia decides to adapt the EURO and use it as the official currency regardless of what Brussels says. What would happen?

[em06][em06]

情各位高手指点一下，偶看了通宵还是一头雾水。不是自己懒，是实在没辙了，宏观就是学不好。。。谢谢~！

[此贴子已经被作者于2006-12-8 11:51:39编辑过]