Figure 35-4
Use the graph below to answer the following questions.
-Refer to Figure 35-4.If the economy starts at C and the money supply growth rate increases,in the long run the economy

Question

Figure 35-4
Use the graph below to answer the following questions. 
-Refer to Figure 35-4.If the economy starts at C and the money supply growth rate increases,in the long run the economy

Quizplus · Accepted Answer

An increase in the money supply growth rate would cause an increase in inflation, which would cause the LM curve to shift upward. As a result, the equilibrium point would move from C to F, where the new LM curve intersects the IS curve.

Figure 35-4 Use the Graph Below to Answer the Following Questions