For interest rates to remain stable during economic expansions,the money supply should:
A)decrease at a faster rate than the demand for money.
B)grow at the same rate as money demand.
C)grow at a faster rate than money demand.
D)grow at a slower rate than money demand.
E)decrease at a slower rate than the demand for money.

Question

Quizplus · Accepted Answer

If the money supply grows at the same rate as the demand for money, then interest rates can remain stable during economic expansions. If the money supply grows too fast or too slow in relation to demand, then interest rates can be impacted.

For Interest Rates to Remain Stable During Economic Expansions,the Money