An increase in the supply of cash on the overnight money market will lead to a

Question

Quizplus · Accepted Answer

An increase in the supply of cash on the overnight money market leads to a decrease in interest rates as there is more cash available for lending. This, in turn, leads to an increase in investment expenditure as businesses can borrow funds at a lower rate and invest in new projects or expand their operations. Therefore, the correct choice is C.

An Increase in the Supply of Cash on the Overnight