Question

When banks make loans, they put more money into the economy. This increases the _____. A.money supply B.interest rates C.stock prices

Answer 1

A.) money is the correct answer

Answer 2

I believe the answer is: A. money supply

When money supply increased, it become far more easier for people to obtain injection of capital in the form of investment or loans. This would create to the establishment of many bushiness and opened up a lot of job opportunities for the people.