If the money supply increases,the interest rate will __________ and people will want to hold a __________ quantity of money.
A)rise; greater
B)rise; smaller
C)not change; greater
D)fall; greater
E)fall; smaller

Question

Quizplus · Accepted Answer

When the money supply increases, the interest rate typically falls, leading people to want to hold a greater quantity of money due to lower opportunity costs of holding cash.

If the Money Supply Increases,the Interest Rate Will __________ and People