As the interest rate __________,the quantity supplied of money __________ and the quantity demanded of money __________.
A) falls; rises; falls
B) rises; remains unchanged; falls
C) falls; remains unchanged; falls
D) rises; rises; rises
E) none of the above

Question

Quizplus · Accepted Answer

The quantity supplied of money is typically controlled by the central bank and does not change with interest rates. However, as interest rates rise, the cost of borrowing money increases, leading to a decrease in the quantity of money demanded.

As the Interest Rate __________,The Quantity Supplied of Money __________

As the Interest Rate ,The Quantity Supplied of Money