In the market for money,when the Fed ________ the money stock,the money supply curve shifts to the ________ and the interest rate ________,everything else held constant.

Question

Quizplus · Accepted Answer

When the Federal Reserve (Fed) increases the money stock, the money supply curve shifts to the right, leading to a decrease in interest rates, assuming all other factors remain constant. This is because an increase in the money supply reduces the cost of borrowing money, which is reflected in lower interest rates.

In the Market for Money,when the Fed ________ the Money