When the money market is drawn with the value of money on the vertical axis,an increase in the money supply causes the equilibrium value of money
A)and equilibrium quantity of money to increase.
B)and equilibrium quantity of money to decrease.
C)to increase,while the equilibrium quantity of money decreases.
D)to decrease,while the equilibrium quantity of money increases.

Question

Quizplus · Accepted Answer

An increase in the money supply shifts the money supply curve to the right, leading to a lower value of money (higher price level) and a higher equilibrium quantity of money.

When the Money Market Is Drawn with the Value of Money