Question: Using a graph demonstrates what happens to the money supply, money demand, the value of money, and the price level ifpeople decide to demand less

Using a graph demonstrates what happens to the money supply, money demand, the value of money, and the price level ifpeople decide to demand less money at each value of money.

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1. Identify your reference point when making a decision based on an element of risk.

3. If there are reasonable alternatives, think about your decisions based on the different reference points and see if there are any contradictions in the decisions.

4. It is only at this point that you can give the problem your full attention in relation to the various ways you have framed the problem.