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.
Chapter15: Monetary Theory And Policy
Section: Chapter Questions
Problem 1.1P
Related questions
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F396e990e-586b-47f9-bf04-8ae2243bd719%2Fe950cae8-42b1-4c95-98ee-592ea0b4c7a1%2F9gem7jk_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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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