-Refer to the above information.An increase in the money supply of $20 billion will cause the equilibrium interest rate to:
A) fall by 4 percentage points.
B) fall by 2 percentage points.
C) rise by 4 percentage points.
D) rise by 2 percentage points.

Question

-Refer to the above information.An increase in the money supply of $20 billion will cause the equilibrium interest rate to:
A) fall by 4 percentage points. 
B) fall by 2 percentage points. 
C) rise by 4 percentage points. 
D) rise by 2 percentage points.

Quizplus · Accepted Answer

An increase in the money supply will lead to a decrease in the equilibrium interest rate.

-Refer to the Above Information