Which would typically NOT occur following an increase in the money supply?
A) a decrease in interest rates
B) an increase in investment
C) an increase in AD
D) a decrease in the overall price level

Question

Quizplus · Accepted Answer

An increase in the money supply would typically lead to inflationary pressure and cause an increase in the overall price level, rather than a decrease. Therefore, option D would typically NOT occur following an increase in the money supply. Options A, B, and C are all possible outcomes of an increase in the money supply.

Which Would Typically NOT Occur Following an Increase in the Money