Depict the effect of an increase in the money supply

Reference no: EM13695938

1. Using Total Expenditures, the money market, and the investment market, explain and graphically depict the effect of an increase in the money supply on the level of output and the interest rate.

2. Using AD/AS, describe the short-run and long-run effects of an increase in G on the equilibrium level of production and the price level. be sure to explain what happens to Total Expenditures (using the 3 effects of spending changes as a result of changes in the price level).

Reference no: EM13695938

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