When the Money Market Is Depicted in a Diagram with the Value

Multiple Choice

When the money market is depicted in a diagram with the value of money on the vertical axis, which statement best describes the effects of an increase in money supply?

A) The equilibrium value and equilibrium quantity of money both increase.
B) The equilibrium value and equilibrium quantity of money both decrease.
C) The equilibrium value increases, while the equilibrium quantity of money decreases.
D) The equilibrium value decreases, while the equilibrium quantity of money increases.