Figure 30-1 -Refer to Figure 30-1. When the money supply curve shifts from MS₁ to MS₂, A)the equilibrium value of money decreases. B)the equilibrium price level decreases. C)the supply of money has decreased. D)the demand for goods and services will decrease.

Question

Quizplus · Accepted Answer

When the money supply curve shifts to the right (from MS₁ to MS₂), it indicates an increase in the money supply. This typically leads to a decrease in the value of money because more money is chasing the same amount of goods and services, potentially leading to inflation.

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