A new government is elected and announces that once it is inaugurated, it will increase the money supply. Use the DD-AA model to study the economy’s response to this announcement. Other things being...

A new government is elected and announces that once it is inaugurated, it will increase the money supply. Use the DD-AA model to study the economy’s response to this announcement.

Other things being equal, suppose the inflation level in the South African economy increased from 7 percent in 2013 to 12 percent in 2014. What will happen to the asset market schedule for this high inflation level?