Result from a change in nominal money supply

Reference no: EM1337179

Effects of Changes in Nominal Money Supply and Price Levels

A change in the real money supply can result either from a change in the nominal money supply through Federal Reserve policy (holding the price level constant) or from a change in the price level (holding the nominal money supply constant). The change in the nominal money supply causes a shift in the aggregate demand curve, whereas a change in the price level causes a movement along the aggregate demand curve. Explain.

Reference no: EM1337179

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