If the Fed increases the money supply, the equilibrium value of money decreases and the equilibrium price level increases.

Name: If the Fed increases the money supply, the equilibrium value of money decreases and the equilibrium price level increases.
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Increasing the money supply typically leads to a decrease in the value of money because more money is chasing the same amount of goods and services, which can lead to higher prices or inflation, thus increasing the equilibrium price level.

If the Fed Increases the Money Supply, the Equilibrium Value