An increase in the supply of money will lead to a(n) _____ in equilibrium real GDP and a _____ equilibrium interest rate.

Name: An increase in the supply of money will lead to a(n) _____ in equilibrium real GDP and a _____ equilibrium interest rate.
Brand: Quizplus
Rating: 4.9 (58 reviews)

Question

Quizplus · Accepted Answer

An increase in the supply of money typically leads to lower interest rates as more funds are available for borrowing. This, in turn, stimulates investment and consumption, leading to an increase in equilibrium real GDP.

An Increase in the Supply of Money Will Lead to A(n)