As the money supply increases,interest rates _______ and aggregate demand shifts to the ______.

Name: As the money supply increases,interest rates _______ and aggregate demand shifts to the ______.
Brand: Quizplus
Rating: 4.8 (46 reviews)

Question

Quizplus · Accepted Answer

When the money supply increases, interest rates typically decrease because there is more money available for borrowing. This decrease in interest rates makes borrowing cheaper, encouraging spending and investment, which shifts the aggregate demand curve to the right.

As the Money Supply Increases,interest Rates _______ and Aggregate Demand