Use the figure below for the following questions. Figure 30-1 -Refer to Figure 30-1. What happens when the money supply curve shifts from MS₁ to MS₂? A)The equilibrium value of money decreases. B)The equilibrium price level decreases. C)The supply of money decreases. D)The demand for goods and services decreases.

Question

Quizplus · Accepted Answer

When the money supply curve shifts from MS1 to MS2, it indicates an increase in the money supply, leading to a decrease in the equilibrium value of money (or an increase in the price level).

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