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A(n) _____ in the money supply will cause interest rates to decrease, which, in turn, causes spending to _____.

A.decrease; decrease
B.increase; increase
C.decrease; increase
D.increase; decrease

asked
User Adianez
by
7.9k points

2 Answers

0 votes

Answer:

increase; increase

Explanation:


answered
User Abbas Gadhia
by
7.4k points
6 votes
I think the correct answer from the choices listed above is option B. An increase in the money supply will cause interest rates to decrease, which, in turn, causes spending to increase. Decrease of interest rate means money is cheap which will result to more spending.
answered
User Carlos Morales
by
8.5k points

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