Question

When the supply of money increases
and the demand for money reduces,
there will be_
Select one:​

Answer 1

Explanation:

supply lowers

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Answer 2

Explanation:

As the interest rate falls, money demand will rise. Once it rises to equal the new money supply, there will be no further difference between the amount of money people hold and the amount they wish to hold, and the story will end. This is why (and how) an increase in the money supply lowers the interest rate.

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