Assume two different economies: one represented by AD₁ and one represented by AD₂. Which economy would the Fed be more inclined to expand the money supply and why? Demonstrate your answer by drawing in the new demand curve that would result.

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The Answer of Assume two different economies: one represented by AD₁ and one represented by AD₂. Which economy would the Fed be more inclined to expand the money supply and why? Demonstrate your answer by drawing in the new demand curve that would result.

Assume Two Different Economies: One Represented by AD1 and One

Assume Two Different Economies: One Represented by AD₁ and One