In the Long Run an Increase in the Money Supply

question 42

Short Answer

In the long run an increase in the money supply causes the price level to __________. The price level moves in this direction because an increase in the money supply creates __________ in the money market that causes people to ________ spending.

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Definitions:

Linear Model

A mathematical representation that describes the relationship between one or more independent variables and a dependent variable.

Diameters

A straight line passing from side to side through the center of a body or figure, especially a circle or sphere, representing the longest distance across it.

Weekly Salaries

The amount of money or compensation given to an employee for one week of work.

Teaching Experience

The accumulated amount of time and expertise gained by an individual in the field of education, through the act of instructing or training learners.