asked 34.7k views
3 votes
When banks make loans, they put more money into the economy. This increases the _____.

money supply
interest rates
stock prices

asked
User Theisenp
by
8.1k points

2 Answers

2 votes

Answer:

money supply

Step-by-step explanation:

answered
User Alexey Belkov
by
7.4k points
2 votes
The question itself says that the banks, when they make loans 'put more money into the economy" - this means that the amount of money will increase and that the money supply (the amount of available money) will increase too.

The correct answer is "money supply"
answered
User Kyr Dunenkoff
by
8.6k points

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