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Economics (MindTap Course List)

13th Edition
Roger A. Arnold
ISBN: 9781337617383

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BuyFindarrow_forward

Economics (MindTap Course List)

13th Edition
Roger A. Arnold
ISBN: 9781337617383
Textbook Problem

How will an increase in the money supply affect aggregate demand?

To determine

Explain how an increase in money supply affects the aggregate demand.

Explanation

In an economy, if money supply increases, then there will be a temporary surplus in the money market. When there is money surplus in the market, then interest rate will increase...

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