In the monetary transmission mechanism what follows after an increase in the money supply has caused a fall in the interest rate?

Question

Quizplus · Accepted Answer

An increase in the money supply typically leads to a fall in interest rates, which makes borrowing cheaper. This encourages more spending on consumption and investment by households and firms, respectively. Additionally, lower interest rates can lead to a depreciation of the domestic currency, making exports more competitive abroad and thus potentially increasing net exports.

In the Monetary Transmission Mechanism What Follows After an Increase