If the Federal Reserve made the decision to increase the money supply in the United States,this would lead to:

Question

Quizplus · Accepted Answer

An increase in the money supply typically leads to an increase in inflation, which in turn lowers the value of the currency. This means that the U.S. dollar would depreciate relative to other currencies. Additionally, an increase in the money supply might lead to greater perceived risk of inflation, which could lower demand for the U.S. dollar even further.

If the Federal Reserve Made the Decision to Increase the Money