What the relationship among money,interest rates,and inflation?

Question

Quizplus · Accepted Answer

Money supply affects interest rates, and interest rates, in turn, influence inflation. Higher interest rates typically lower inflation by reducing consumer and business spending, whereas lower interest rates increase inflation by boosting spending. When the money supply increases, it typically results in a decrease in interest rates, encouraging spending, and leading to inflation. So, there is a direct relationship among money, interest rates, and inflation.

What the Relationship Among Money,interest Rates,and Inflation