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:

Civil War

A war between citizens of the same country.

Sun Belt

A region in the United States generally considered to stretch across the Southeast and Southwest, characterized by warm climate, rapid population growth, and vibrant economies.

Central Cities

Principal cities in a metropolitan area, typically containing a significant portion of the region's employment and amenities.

Suburbanization

The process by which people move from urban areas to the suburbs, leading to the expansion of suburban communities.