When the money market is drawn with the value of money on the vertical axis, if the Federal Reserve

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When the money market is drawn with the value of money on the vertical axis the value of money increases if?
When the money market is depicted in a diagram with the value of money on the vertical axis what happens if the price level is above the equilibrium level?
When the value of money is on the vertical axis the money supply curve slopes upward?
When graphed against interest rate the supply curve for money appears vertical because the quantity of money supplied is determined by?

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When the money market is drawn with the value of money on the vertical axis the value of money increases if?

When the money market is drawn with the value of money on the vertical axis, if the value of money is below the equilibrium level, the value of money will rise.

When the money market is depicted in a diagram with the value of money on the vertical axis what happens if the price level is above the equilibrium level?

Terms in this set (96) When the money market is depicted in a graph with the value of money on the vertical axis, as the price level increases, what happens to the value of money? It decreases, so the quantity of money demanded increases.

When the value of money is on the vertical axis the money supply curve slopes upward?

When the value of money is on the vertical axis, the money supply curve slopes upward because an increase in the value of money induces banks to create more money. When the value of money is on the vertical axis, the money supply curve is vertical and shifts right if the Federal Reserve buys bonds.

When graphed against interest rate the supply curve for money appears vertical because the quantity of money supplied is determined by?

The Supply of Money Because the quantity of reserves is determined by Federal Reserve policy, we draw the supply curve of money in Figure 25.9 “The Supply Curve of Money” as a vertical line, determined by the Fed's monetary policies.