What will be the effects of an increase in the money supply on the interest rate?
What will be an ideal response?
An increase in the money supply will cause interest rate to decrease. This should increase investment and possibly consumption of durable goods. The reduction in the interest rate will cause a depreciation of the dollar.
Economics
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Production under increasing opportunity costs can result from the two industries using factors of production in different combinations
Indicate whether the statement is true or false
Economics
Refer to Figure 16.1. An increase in expected output in the future is best represented by a movement from
A) point A to point B. B) point B to point A. C) point A to point C. D) point C to point A.
Economics