An excess money supply creates a borrower's market,forcing down interest rates and the cost of borrowing.

Question

Quizplus · Accepted Answer

When there is more money available in the market, there is a greater supply of funds for borrowing purposes. This increase in supply means that lenders must compete for borrowers by reducing interest rates and other borrowing costs. This creates a borrower's market, where borrowers have more choices and negotiating power in terms of securing loans at lower rates.

An Excess Money Supply Creates a Borrower's Market,forcing Down Interest