An increase in the quantity of money supplied shifts the money supply curve to the ________,and the equilibrium interest rate ________,everything else held constant.
A)right;falls
B)right;rises
C)left;falls
D)left;rises

Question

Quizplus · Accepted Answer

An increase in the quantity of money supplied leads to a rightward shift of the money supply curve, causing the equilibrium interest rate to fall. This is because with a larger money supply, there is more money available for lending, leading to higher competition among borrowers for loans and thereby causing interest rates to fall.

An Increase in the Quantity of Money Supplied Shifts the Money