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Using Separate Graphs, Demonstrate What Happens to the Money Supply

Question 112

Short Answer

Using separate graphs, demonstrate what happens to the money supply, money demand, the value of money, and the price level if:
a.the Fed increases the money supply.
b.people decide to demand less money at each value of money.

Correct Answer:

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blured image blured image a.
The Fed increases the money supply....

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