In the short run, because of price stickiness (wages and prices of because products are set in contract in a period of time so that they cannot change immediately in response to the money supply),...
Money supply determines the value of money i.e. if there are a lot of money in an economy, the value decreases and the other way around. Therefore, money supply essential decides the price of a good...
An increase in the money supply shifts the money supply curve to the right. If you look on your graph, you will see that an increase in money supply will cause the interest rate to decrease. Here's...
An increase in the money supply can result in a greater demand by increasing the number of potential buyers. This can cause inflation, which means generally higher prices for goods and services.