Explain How the Keynesians Believe an Increase in the Money

question 69

Essay

Explain how the Keynesians believe an increase in the money supply will affect the economy.

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Definitions:

Decrease

A reduction in quantity, size, or intensity of a particular entity or activity.

Increase

An upward movement in quantity, price, or value.

Increase in Supply

A situation where the quantity of a good or service that producers are willing to supply at a given price rises.

Increase in Demand

A situation where consumers are willing and able to purchase more of a good or service at each possible price, often depicted by a rightward shift in the demand curve.