Value of Money 2 1 MS1 MS2 A с B D Money Demand Quantity of Money Refer to the diagram above, if the money supply is MS2 and value of money is 1, this will results in excess of money supply and money demand by CD shortage of money demand by BD no excess or shortage of money supply or money demand

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter22: Inflation
Section: Chapter Questions
Problem 8SCQ: If inflation rises unexpectedly by 5, would a state government that had recently borrowed money to...
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Value of
Money
2
1
MS1 MS2
A
с
B
D
Money
Demand
Quantity of
Money
Refer to the diagram above, if the money supply is
MS2 and value of money is 1, this will results in
excess of money supply and money demand
by CD
shortage of money demand by BD
no excess or shortage of money supply or
money demand
Transcribed Image Text:Value of Money 2 1 MS1 MS2 A с B D Money Demand Quantity of Money Refer to the diagram above, if the money supply is MS2 and value of money is 1, this will results in excess of money supply and money demand by CD shortage of money demand by BD no excess or shortage of money supply or money demand
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