Question
. (9 points) (a) (6 points) On two properly labeled diagrams, show the effect of an increase in the money supply in an open economy
. (9 points) (a) (6 points) On two properly labeled diagrams, show the effect of an increase in the money supply in an open economy with a flexible exchange rate using the Money Market Model as well as the AD-AS Model. (b) (3 points) What would this increase in the money supply do to the value of money? Explain.
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Advanced Placement Microeconomics
Authors: Bill Hurd
1st Edition
1531150306, 978-1531150303
