Category: Business and Money > Economics
Asked by: stitch1984-ga
List Price: $2.00
12 Jul 2006 09:27 PDT
Expires: 11 Aug 2006 09:27 PDT
Question ID: 745614
Suppose the Fed increased the money supply to $1,800 billion. What would happen to equilibrium price and quantity? http://highered.mcgraw-hill.com/sites/0072819359/student_view0/chapter15/interactive_graphs.html#
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From: jack_of_few_trades-ga on 12 Jul 2006 13:45 PDT
The graphs on the page you referrenced will answer this question for you... Simply slide the Money Supply bar (noted by big S little m [Sm]) to the right to signify an increase in the money supply. Then look at the effects on the graph on the far right for your answers.
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