Social Sciences, asked by levinjerusv, 6 months ago

if loan rates are decreased, what would be changes in the money flow in the market​

Answers

Answered by 1981kumardev
1

Explanation:

All else being equal, a larger money supply lowers market interest rates, making it less expensive for consumers to borrow. Conversely, smaller money supplies tend to raise market interest rates, making it pricier for consumers to take out a loan. The current level of liquid money (supply) coordinates with the total demand for liquid money (demand) to help determine interest rates.

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