When the money market is drawn with the value of money on the vertical axis,if money supply and money demand both shift to the right
A)the price level must have risen
B)the price level must have fallen.
C)the price level rises if money supply shifts farther than money demand.
D)the price level falls if money supply shifts farther than money demand.

Question

Quizplus · Accepted Answer

If the money supply shifts farther to the right than money demand, it indicates an excess supply of money, which typically leads to an increase in the price level (inflation).

When the Money Market Is Drawn with the Value of Money