Figure 10-7

-Refer to Figure 10-7.The increase in money supply leads to a(n)_______ in investment, a(n)_______ in real GDP, and a _______ in the money demand curve.

Question

Figure 10-7
 
-Refer to Figure 10-7.The increase in money supply leads to a(n)_______ in investment, a(n)_______ in real GDP, and a _______ in the money demand curve.

Quizplus · Accepted Answer

An increase in money supply boosts investment, which leads to an increase in real GDP. As a result, the demand for money also increases, shifting the money demand curve to the right. Therefore, choice D best fits the scenario described in Figure 10-7.

Figure 10-7 -Refer to Figure 10-7.The Increase in Money Supply Leads to Money