If the supply of money increased while demand for money remained constant, the equilibrium interest rate _____.

Name: If the supply of money increased while demand for money remained constant, the equilibrium interest rate _____.
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Question

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When the supply of money increases while the demand for money remains constant, the equilibrium interest rate falls because there is more money available for borrowing, which reduces the cost of borrowing (interest rate).

If the Supply of Money Increased While Demand for Money