Based on the diagram below, which of the following best describes what will happen when the money supply increases?

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MCQs on the importance of money, banking, and financial markets of a developed economy.


Based on the diagram below, which of the following best describes what will happen when the money supply increases?<br><img src='https://www.fatskills.com/images2/GradExams/8D91C122-DE8A-4EFC-9D27-4934BDB2F0CC.jpg' height='613' width='844'/>