The diagram shows the demand for money in an economy where the horizontal axis is in...
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The diagram shows the demand for money in an economy where the horizontal axis is in billions of dollars and ertical axis is an index of the purchasing power value of money) If the supply of money in this economy is $3 billion, sketch the supply of money curve. ) llustrate on your diagram a 50 percent increase in the money supply 90 80 70 60 50 3 points 40 30 20 MO 2 points 10 What is the new value of the index of the value of 1 2 3 4 56 7 8 9 Quantity of Money 12 points money? If there are no other changes in the economy, how much will be the ensuing increase in the price level? 3 points Value of Money The diagram shows the demand for money in an economy where the horizontal axis is in billions of dollars and ertical axis is an index of the purchasing power value of money) If the supply of money in this economy is $3 billion, sketch the supply of money curve. ) llustrate on your diagram a 50 percent increase in the money supply 90 80 70 60 50 3 points 40 30 20 MO 2 points 10 What is the new value of the index of the value of 1 2 3 4 56 7 8 9 Quantity of Money 12 points money? If there are no other changes in the economy, how much will be the ensuing increase in the price level? 3 points Value of Money
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