Changes in the money supply can affect

Question

Quizplus · Accepted Answer

Changes in the money supply can affect the expected inflation rates, the actual inflation rates, and the supply of loans. When the money supply is increased, it can lead to higher expected inflation rates because there is more money chasing the same amount of goods and services. This can also lead to higher actual inflation rates. Additionally, an increase in the money supply can lead to an increase in the supply of loans because there is more money available for lending. Therefore, all of the choices (a, b, and c) are affected by changes in the money supply.

Changes in the Money Supply Can Affect