A rightward shift of the money supply ________.
A)may come about from an increase in the quantity of money supplied by the Federal Reserve
B)may come about from a decrease in the price level
C)leads to a decrease in interest rates ceteris paribus
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

- A rightward shift of the money supply can result from an increase in the quantity of money supplied by the Federal Reserve.
- A rightward shift of the money supply can also result from a decrease in the price level, as the real value of the money supply increases.
- A rightward shift of the money supply typically leads to a decrease in interest rates ceteris paribus, as the increased availability of money leads to a decrease in the market price of borrowing.

A Rightward Shift of the Money Supply ________