When the money market is drawn with the value of money on the vertical axis, an

Question

When the money market is drawn with the value of money on the vertical axis, an increase in the money supply creates an excess

a. supply of money causing people to spend more.

b. supply of money causing people to spend less.

c. demand for money causing people to spend more.

d. demand for money causing people to spend less.

When the money market is drawn with the value of money on the vertical axis, if the value of money is below the equilibrium level,

a. the price level will rise.

b. the value of money will rise.

c. money demand will shift left.

d. money demand will shift right

           When the money market is drawn with the value of money on the vertical axis, which of the following would shift money demand right?

           a.   an increase in the price level

           b.   a decrease in the price level

           c.    open-market purchases by the central bank

           d.   None of the above is correct.

which one is correst answer and explain why ?????

Explanation / Answer

1

a. supply of money causing people to spend more.

2

c. money demand will shift left.

3

a. an increase in the price level

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