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Money Supply Curve Shift Right. A decrease in demand would shift the curve to the left. This raises investment in the commodity market. An increase in the money supply must cause which of the following. The short-run aggregate supply curve and the short-run Phillips curve both shift left.
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In the graph of the money market shown on the right what could cause the money supply curve to shift from MS1 to MS2. No change in the interest rate if investment is independent of the interest rate. The bond sales lead to a reduction in the money supply causing the money supply curve to shift to the left and raising the equilibrium interest rate. Read rest of the answer. An increase in money supply shifts the LM curve to toe right and reduces toe rate of interest. A decrease in the price level shifts the money supply curve right.
If it shifts left lower money demand will cause the interest rate to decrease.
The money supply shifts right the interest rate falls investment increases and the aggregate demand curve shifts right D. The short-run aggregate supply curve and the short-run Phillips curve both shift left. Which of the following statements regarding taxes is correct. The demand for money shifts out when the nominal level of output increases. No change in the interest rate if investment is independent of the interest rate. The easiest way to see this is to first imagine a graph where money demand is fixed and the money supply increases shifts right leading to a lower interest rate and vice versa.
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All of the above. The demand for money shifts out when the nominal level of output increases. When the LM curve shifts in the IS-LM Model If the central bank or Federal Reserve decides to decrease the money supply by selling t. Investment falls and so income. All of the above.
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A When the money market is drawn with the value of money on the vertical axis an increase in the money supply. An increase in investment and a rightward shift in the IS curve D. The short-run aggregate supply curve and the short-run Phillips curve both shift left. An increase in money supply shifts the LM curve to toe right and reduces toe rate of interest. A decrease in the price level shifts the money supply curve right.
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If the central bank or Federal Reserve decides to increase the money supply by buying t bills then the LM curve shifts right. When the LM curve shifts in the IS-LM Model If the central bank or Federal Reserve decides to decrease the money supply by selling t. The Fed decreases the money supply by raising interest O B. An increase in money supply shifts the LM curve to toe right and reduces toe rate of interest. When the quantity of money demanded increase the price of money interest rates also increases and causes the demand curve to increase and shift to the right.
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Monetary stimulus that is increasing the money supply causes the LM curve to shift right resulting in higher output and lower interest rates. Monetary stimulus that is increasing the money supply causes the LM curve to shift right resulting in higher output and lower interest rates. Government spending is decreased. Fiscal stimulus that is increasing government spending andor decreasing taxes shifts the IS curve to the right raising interest rates while increasing output. The higher interest rates are problematic because they can crowd out C I and NX moving the IS curve left and reducing output.
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The short-run aggregate supply curve shifts left and the short-run Phillips curve shifts right. Investment falls and so income. If the central bank or Federal Reserve decides to increase the money supply by buying t bills then the LM curve shifts right. The demand for money shifts out when the nominal level of output increases. The money supply curve will shift to the left and the equilibrium interest rate will fall.
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An increase in money supply shifts the LM curve to toe right and reduces toe rate of interest. The government raises income taxes. The Fed decreases the money supply by raising interest O B. Read rest of the answer. Again this makes great sense intuitively.
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An increase in money supply shifts the LM curve to toe right and reduces toe rate of interest. This raises investment in the commodity market. If the demand curve shifts right and the money supply stays constant higher demand for money will spell a higher interest rate. Fiscal stimulus that is increasing government spending andor decreasing taxes shifts the IS curve to the right raising interest rates while increasing output. The government raises income taxes.
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If it shifts left lower money demand will cause the interest rate to decrease. When the quantity of money demanded increase the price of money interest rates also increases and causes the demand curve to increase and shift to the right. The short-run aggregate supply curve and the short-run Phillips curve both shift left. The short-run aggregate supply curve shifts right and the short-run Phillips curve shifts left. An increase in investment and a rightward shift in the IS curve D.
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Most economists believe that in the short run the greatest impact of a. Investment falls and so income. The money supply curve will shift to the right and the equilibrium interest rate will fall. The short-run aggregate supply curve and the short-run Phillips curve both shift left. Fiscal stimulus that is increasing government spending andor decreasing taxes shifts the IS curve to the right raising interest rates while increasing output.
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Workers build expectations of higher inflation into their contracts. The government raises income taxes. The Fed decreases the money supply by raising interest O B. An increase in investment and a rightward shift in the IS curve D. Congress increases the money supply.
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Investment falls and so income. When the Fed sells bonds the supply curve of bonds shifts to the right and the price of bonds falls. The money supply curve will shift to the right until the demand for money equals the supply. The money demand curve will shift to the right causing the price of bonds to increase and the interest rate to fall until the demand for money equals the supply. A leftward shift in the IS curve B.
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The LM curve shifts right left when the money supply real money balances increases decreases. The easiest way to see this is to first imagine a graph where money demand is fixed and the money supply increases shifts right leading to a lower interest rate and vice versa. The bond sales lead to a reduction in the money supply causing the money supply curve to shift to the left and raising the equilibrium interest rate. A and b 11The aggregate demand curve decreases when A. Higher interest rates lead to a shift in the aggregate demand curve to the left.
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None of the above. Most economists believe that in the short run the greatest impact of a. Congress increases the money supply. An increase in money supply shifts the LM curve to toe right and reduces toe rate of interest. The money supply increases.
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The money supply curve will shift to the left and the equilibrium interest rate will fall. The money supply curve will shift to the right and the equilibrium interest rate will fall. All of the above. The short-run aggregate supply curve shifts left and the short-run Phillips curve shifts right. The Fed decreases the money supply by deciding to sell US.
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If the demand curve shifts right and the money supply stays constant higher demand for money will spell a higher interest rate. When the Fed sells bonds the supply curve of bonds shifts to the right and the price of bonds falls. The money supply increases. When the Fed sells bonds the supply curve of bonds shifts to the right and the price of bonds falls. Fiscal stimulus that is increasing government spending andor decreasing taxes shifts the IS curve to the right raising interest rates while increasing output.
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The bond sales lead to a reduction in the money supply causing the money supply curve to shift to the left and raising the equilibrium interest rate. Higher interest rates lead to a shift in the aggregate demand curve to the left. The money demand curve will shift to the right causing the price of bonds to increase and the interest rate to fall until the demand for money equals the supply. The LM curve shifts right left when the money supply real money balances increases decreases. The aggregate demand curve shifts to the right when A.
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In the graph of the money market shown on the right what could cause the money supply curve to shift from MS1 to MS2. The Fed decreases the money supply by deciding to sell US. Congress increases the money supply. A decrease in demand would shift the curve to the left. Monetary stimulus that is increasing the money supply causes the LM curve to shift right resulting in higher output and lower interest rates.
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The short-run Phillips curve will shift to the left and the unemployment rate will increase. Monetary stimulus that is increasing the money supply causes the LM curve to shift right resulting in higher output and lower interest rates. None of the above. If the demand curve shifts right and the money supply stays constant higher demand for money will spell a higher interest rate. This raises investment in the commodity market.
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