If the publics desired money balances were to increase and
if the public's desired money balances were to increase and the Fed were to allow the quantity of money in circulation to rise, how would such a Fed policy response influence the short-run equilibrium price level and level of real gdp per year?
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consider the following simple model of an economyc 1000 85ydi 780 - 800rg 1000t -50 009yim 100 01yex 100 01yf
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if the publics desired money balances were to increase and the fed were to allow the quantity of money in circulation
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