When the money market in the model of liquidity preference


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.

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Microeconomics: When the money market in the model of liquidity preference
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