The Money Market
AP Macroeconomics · Flashcards
AP MACROECONOMICS · FLASHCARDS
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QUESTION
What does a rightward shift in the money supply curve indicate?
QUESTION
How does inflation affect the nominal interest rate?
QUESTION
What is the relationship between the money supply and inflation?
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ANSWER
An increase in money supply can lead to higher inflation. More money in circulation can drive up price levels.
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