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When the money market is drawn with the value of money on the vertical axis, an increase in the money supply causes the equilibrium value of money

A) right, lowering the price level
B) right, raisig the price level
C) left, raisig the price level
D) left, lowering the price level

User Grucha
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1 Answer

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Answer:

The correct answer is b. right, raising the price level.

Step-by-step explanation:

The balance of the money market or money market is the market point that occurs as a result of the crossing of the money supply with the money demand. As a result of this equivalence, we will obtain the level of optimal interest rates in the short term.

The demand for money is defined as the proportion of wealth that people want to keep in the form of money. However, the money supply is defined as cash held by the public plus deposits held in bank accounts.

User Tobiloba
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