keynesian effect of increase in money supply on level of real income, price level, money wage...
keynesian effect of increase in money supply on level of real income, price level, money wage and interest (with diagram)
Homework Answers
Increased money supply helps expand credit availability to corporate and thus expansion of wages or real income rises as government cuts taxes as part of keynesian economics.
Also government spending rises whichbcauses borrowing to rise and thus interest rates rise.
Such an expansionary fiscal policy leads to increase in consumption and aggregate demand and thus prices rise. Also money wages rise as corporations have more flexibility for rise in wages due to higher money supply.
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keynesian effect of increase in money supply on level of real
income, price level, money wage...
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economy can produce, a (nominal or real?)
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