Figure 1 Value of Money 2 1 MS1 MS2 B D Money Demand Quantity of Money 14. Refer to Figure 1. If the money supply is MS2 and the value of money is 2, then a. the quantity of money demanded is greater than the quantity supplied; the price level will rise. b. the quantity of money demanded is greater than the quantity supplied; the price level will fall. c. the quantity of money supplied is greater than the quantity demanded; the price level will rise. d. the quantity of money supplied is greater than the quantity demanded; the price level will fall.

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