In the market for money,business cycle expansions increase income,causing money demand to ________ and interest rates to ________,everything else held constant.

Question

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During business cycle expansions, income increases, leading to higher demand for money as individuals and businesses have more income to spend and invest. This increased demand for money, with everything else held constant, typically leads to higher interest rates as the price of borrowing money goes up with increased demand.

In the Market for Money,business Cycle Expansions Increase Income,causing Money