The most formal attire for a wedding is white tie and if you receive a wedding invitation in the mail that says white tie is required, you're pretty restricted as to what you should and should not wear.
Figure 11.5 Inflation and Money Growth in the Long Run examines annual growth rates based on observing the money supply and the price level at five-year intervals. The first observation is the annual growth rate for the period starting in January 1959 and ending in January 1964.omparing these two figures, you can see that the relationship between money growth and inflation is much tighter when we examine five-year periods, as in Figure 11.5 Inflation and Money Growth in the Long Run , rather than the monthly changes in Figure 11.4 Inflation and Money Growth in the Short Run .
Therefore you can see a downward sloping. When the quantity of money demand increases(from M** to M*), the interest rate will decrease(from i* to i**). When money demand increase, for all interest rate level, the quantity of money demand will increase.Thus, the whole money demand curve shifts rightwards. It will achieve another equilibrium in money market, where the interest rate level is higher than initial equilibrium interest rate.f we draw money demand in an interest rate-amount of money demand in real terms space, i.e. y-axis is long-term interest rate while x-axis is money demand in real terms, we can see the curve of money demand is downward sloping.