Permanent increase in the united states money supply, International Economics

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Q. Using 4 different figures, plot the time paths showing the effects of a permanent increase in the United States money supply on:

A. U.S. money supply.

B. the dollar interest rate.

C. the U.S. price level.

D. the dollar/euro exchange rate.

Answer: The below given figures are displays the time path that showing the effects of a permanent increase in the United States money supply on following

• U.S. money supply.

• The dollar interest rate.

• The U.S. price level.

• The dollar/euro exchange rate.

750_effects of a permanent increase in the United States money supply.png


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