Figure 11-1
-Refer to the Figure 11-1.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

Figure 11-1 
-Refer to the Figure 11-1.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.

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.

Figure 11-1 -Refer to the Figure 11-1.What Happens When the Money Supply