An increase in the money supply will cause the nominal interest rate to ________ and the quantity of money to ________.

Name: An increase in the money supply will cause the nominal interest rate to ________ and the quantity of money to ________.
Brand: Quizplus
Rating: 4.9 (49 reviews)

Question

Quizplus · Accepted Answer

An increase in the money supply typically leads to a decrease in the nominal interest rate because there is more money available for lending. This increase in money supply also leads to an increase in the quantity of money in the economy.

An Increase in the Money Supply Will Cause the Nominal