Consider the money market drawn with the value of money on the vertical axis. If money demand is unchanged and the price level rises, then a. the money supply must have increased, perhaps because the Fed bought bonds. b. the money supply must have decreased, perhaps because the Fed bought bonds. c. the money supply must have increased, perhaps because the Fed sold bonds. d. the money supply must have decreased, perhaps because the Fed sold bonds.
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Consider the money market drawn with the value of money on the vertical axis. If money demand is unc...
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