Order Your Paper From the most reliable Essay writing Service. 

.

 



Question: In the figure above, in the long run what happens if the Fed increases the quantity of money by 5...

Show transcribed image text In the figure above, in the long run what happens if the Fed increases the quantity of money by 5 percent? The price level rises by 5 percent and the LRMD shifts leftward. The real interest rate falls and the RMD curve shifts rightward. The value of money rises by percent. The value of money falls by 5 percent and there will be movement down along the LRND curve. The nominal interest rate rises by 5 percent.

In the figure above, in the long run what happens if the Fed increases the quantity of money by 5 percent? The price level rises by 5 percent and the LRMD shifts leftward. The real interest rate falls and the RMD curve shifts rightward. The value of money rises by percent. The value of money falls by 5 percent and there will be movement down along the LRND curve. The nominal interest rate rises by 5 percent.