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) It creates an excess supply of money, causing people to spend more.
B) It creates an excess supply of money, causing people to spend less.
C) It creates an excess demand for money, causing people to spend more.
D) It creates an excess demand for money, causing people to spend less.
Correct Answer:
Verified
Correct Answer:
Verified
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