Figure 369-169 VALUE OF MONEY 2 MS. D B MS. A C Money Demand QUANTITY OF MONEY Refer to Figure 369-169. If the money supply is MS₂ and the value of money is 5, then the quantity of money demanded is greater than the quantity supplied; the price level will rise. demanded is greater than the quantity supplied; the price level will fall. supplied is greater than the quantity demanded; the price level will rise. supplied is greater than the quantity demanded; the price level will fall.

Figure 369-169 VALUE OF MONEY 2 MS. D B MS. A C Money Demand QUANTITY OF MONEY Refer to Figure 369-169. If the money supply is MS₂ and the value of money is 5, then the quantity of money demanded is greater than the quantity supplied; the price level will rise. demanded is greater than the quantity supplied; the price level will fall. supplied is greater than the quantity demanded; the price level will rise. supplied is greater than the quantity demanded; the price level will fall.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Figure 369-169
VALUE OF MONEY
5
2
MS.
D
B
MS.
A
C
Money Demand
QUANTITY OF MONEY
Refer to Figure 369-169. If the money supply is MS₂ and the value of money is 5, then the quantity of money
demanded is greater than the quantity supplied; the price level will rise.
demanded is greater than the quantity supplied; the price level will fall.
supplied is greater than the quantity demanded; the price level will rise.
supplied is greater than the quantity demanded; the price level will fall.

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