The rationale for a monetary rule can be explained by using the equation of exchange if the changes in velocity equal the changes in the money supply and leave the price level (P) unchanged. velocity is assumed to be zero so that changes in the money supply equal changes in real output and leave the price level (P) unchanged. the changes in velocity equal the changes in real output and leave the price level (P) unchanged. velocity is assumed to be constant so that changes in the money supply equal changes in real output and leave the price level (P) unchanged. b. If velocity unexpectedly falls because of, say, a drop in investment spending by businesses, adherence to a monetary rule will require that there be a higher price level. cause interest rates to rise. not provide sufficient liquidity to provide for economic growth. result in too much liquidity to provide for economic growth.
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Ответ:
The demand curve for steel to shift to the right
Explanation:
The question isn't complete. The full question can be found: https://www.chegg.com/homework-help/questions-and-answers/3-plastic-steel-substitutes-production-body-panels-certain-automobiles-price-plastic-incre-q31436687
Substitutes goods are goods that can be used in place of one another. If the price of plastic increases, consumers shift to steel, its demand increases and the supply curve shifts to the right.
I hope my answer helps you