An increase in the supply of money will lead to _______ in equilibrium real GDP and _______ in the equilibrium interest rate.

Name: An increase in the supply of money will lead to _______ in equilibrium real GDP and _______ in the equilibrium interest rate.
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Question

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An increase in the supply of money typically lowers interest rates, which encourages investment and consumption, leading to an increase in equilibrium real GDP.

An Increase in the Supply of Money Will Lead to _______