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:

Nitrogen

Nitrogen is a chemical element with the symbol N and atomic number 7, making up about 78% of the Earth’s atmosphere and essential for all living organisms.

Flint, Michigan

A city in the United States known for its industrial history and a water crisis that exposed residents to lead-contaminated water.

City Life

The characteristics and daily experiences of living in densely populated urban areas, including the social, cultural, and economic facets.

Rural Areas

Locations characterized by low population density and large open spaces, often associated with farming or agriculture.