An increase in the money supply causes interest rates to __________,investment spending to __________ and aggregate demand to __________.
A)rise; rise; rise
B)rise; fall; rise
C)rise; fall; fall
D)fall; rise; fall
E)fall; rise; rise

Question

Quizplus · Accepted Answer

An increase in the money supply typically leads to lower interest rates, which encourages more investment spending, thereby increasing aggregate demand.

An Increase in the Money Supply Causes Interest Rates to __________,Investment