When the money market is drawn with the value of money on the vertical axis,an increase in the money supply

Question

Quizplus · Accepted Answer

An increase in the money supply would shift the money supply curve to the right, leading to an excess supply of money at the original price level. As a result, the demand for goods and services would increase, driving up the price level. This, in turn, would decrease the value of money, as it would be able to purchase fewer goods and services than before. Therefore, an increase in the money supply would increase the price level and decrease the value of money.

When the Money Market Is Drawn with the Value of Money