A(n) _____ in the money supply in a country _____ the domestic interest rates.
A)expansion; increases
B)expansion; decreases
C)contraction; decreases
D)contraction; has no impact on

Question

Quizplus · Accepted Answer

An expansion in the money supply typically decreases domestic interest rates because more money available means banks can lend more easily, reducing the cost of borrowing.

A(n) _____ in the Money Supply in a Country _____

A(n) _ in the Money Supply in a Country _