An increase in the willingness of banks to lend will result in
A)a lower real interest rate, whereas an increase in the money supply will lead to a higher real interest rate.
B)a lower real interest rate as will an increase in the money supply.
C)a higher real interest rate as will an increase in the money supply.
D)a higher real interest rate, whereas an increase in the money supply will lead to a lower real interest rate.

Question

Quizplus · Accepted Answer

The Answer of An increase in the willingness of banks to lend will result in
A)a lower real interest rate, whereas an increase in the money supply will lead to a higher real interest rate.
B)a lower real interest rate as will an increase in the money supply.
C)a higher real interest rate as will an increase in the money supply.
D)a higher real interest rate, whereas an increase in the money supply will lead to a lower real interest rate.

An Increase in the Willingness of Banks to Lend Will