Figure 30-1 -Refer to Figure 30-1.When the money supply curve shifts from MS₁ to MS₂, A)the demand for goods and services decreases. B)the economy's ability to produce goods and services increases. C)the equilibrium price level decreases. D)None of the above is correct.

Question

Quizplus · Accepted Answer

An increase in the money supply shifts the aggregate demand curve to the right, leading to an increase in the equilibrium price level.

Figure 30-1 -Refer to Figure 30-1.When the Money Supply Curve Shifts from Curve