If there is excess money supply in the economy, which of the following is most likely to occur?

Question

Quizplus · Accepted Answer

When there is excess money supply in the economy, people have more money to invest, which often leads to increased demand for bonds. As demand for bonds increases, bond prices go up. Since bond prices and interest rates move inversely to each other, an increase in bond prices leads to a decrease in interest rates.

If There Is Excess Money Supply in the Economy, Which