Figure 12-1

-Refer to Figure 12-1. When the money supply curve shifts from MS₁ to MS₂,

Name: Figure 12-1 -Refer to Figure 12-1. When the money supply curve shifts from MS 1 to MS 2 ,
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Question

Figure 12-1 -Refer to Figure 12-1. When the money supply curve shifts from MS₁ to MS₂,

Quizplus · Accepted Answer

When the money supply curve shifts from MS1 to MS2, it indicates an increase in the money supply. This typically leads to a decrease in the equilibrium value of money, as more money in the economy can lead to higher price levels, reducing the purchasing power of money.

Figure 12-1 -Refer to Figure 12-1. When the Money Supply Curve Shifts