If the economy is not fully using its inputs, pumping money into the economy will put ________ pressure on interest rates and will tend to ________ output.

Question

Quizplus · Accepted Answer

When the economy is not fully utilizing its inputs, injecting money into the economy typically lowers interest rates due to increased supply of money and encourages economic activity, which tends to increase output.

If the Economy Is Not Fully Using Its Inputs, Pumping