When the money supply increases interest rates fall and so AD shifts right interest rates fall and AD shifts left interest rates rise and so shift AD right interests rates rise and so shift AD left
When the money supply increases interest rates fall and so AD shifts right interest rates fall and AD shifts left interest rates rise and so shift AD right interests rates rise and so shift AD left
Chapter16: Monetary Policy
Section: Chapter Questions
Problem 15SQ
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Question
When the money supply increases
interest rates fall and so AD shifts right |
||
interest rates fall and AD shifts left |
||
interest rates rise and so shift AD right |
||
interests rates rise and so shift AD left |
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