Question

at secure web cjouedu.tw/-loc/Courses/sg27 pdr 336 Parkin Macons Tenth Edition LAS SAS s 130 120 110 C SA50 SAS 100 90 AD, 0 11 13 5 171 Real GOP ilioes of 2005 dolan 32) In the above ligure, the economy is initially at point A Which point best repeesents the short-run resporse to a decrease in the growth rate of the quantity of money, accceding to the A) A, that is, there is no change B) B D) D Answer D AACSB Avalytial Ska

Which variables are affected by growth rate of quantity of money supplied?

Answer 1

If money supply rises in the economy then interest rate falls, so investment rises, thus aggeaggre demand rises, aggregate output rises, so consumption also rises.

Thus economic variables affected

Interest rate, Investment, Consumption , Output