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Value of money on the vertical axis

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When the money market (in the model of liquidity preference) is drawn with the value of money on the vertical axis, the general price level increases if

  • money demand shifts right and decreases if money supply shifts right.
  • money demand shifts right and decreases if money supply shifts left.
  • money demand shifts left and decreases if money supply shifts right.
  • money demand shifts left and decreases if money supply shifts left.

Reference no: EM131040205

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