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If the Federal Reserve printed too little money, money's relative price would _____________________ and the money price of goods would _________________________.

a. all; fall
b. rise; fall
c. fall; rise
d. rise; rise

1 Answer

3 votes

Answer:

b. rise; fall

Step-by-step explanation:

If the Federal Reserve printed too little money, there would be a leftward shift of the supply curve. This would lead to a rise in money's relative price. This would lead to a rise in the value of money as less money would be needed to buy goods and services. So, the money price of goods would fall

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