An increase in money supply will lead to higher net export and higher investment and higher aggregate expenditure in the domestic economy.

Name: An increase in money supply will lead to higher net export and higher investment and higher aggregate expenditure in the domestic economy.
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Question

Quizplus · Accepted Answer

An increase in money supply will lead to lower interest rates, which will encourage investment and net exports. This will increase aggregate expenditure in the domestic economy.

An Increase in Money Supply Will Lead to Higher Net