Question: Please graphically demonstrate the effects on the level of prices and the value of money if consumers increase their spending due to stock market boom
Please graphically demonstrate the effects on the level of prices and the value of money if consumers increase their spending due to stock market boom and therefore make more transactions. On the other hand, the Fed decreases the money supply in the economy at the same time. Does the price level go up or down? Does the value of money go up or down?
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