How that will affect the money demand curve

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Reference no: EM131005341

An increase in the supply of money will lead to a(n) ____ in equilibrium real GDP and a(n) _____ in equilibrium price level. To close an inflationary gap using monetary policy, the Federal Reserve should _____ the money supply to _____ investment and consumer spending and shift the aggregate demand curve to the _____. The Quantity demanded of money is negatively related to ____, and the demand for money is positively related to _____. If inflation increases from 2% to 5 %, how that will affect the money demand curve?

Reference no: EM131005341

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