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It Is Possible That When the Money Supply Rises,interest Rates

question 47

Multiple Choice

It is possible that when the money supply rises,interest rates may ________ if the ________ effect is more than offset by changes in income,the price level,and expected inflation.


Definitions:

Maker

One who promises to pay a certain sum to the holder of a promissory note or certificate of deposit (CD).

Drawer

In banking and finance, the person who writes or issues a cheque, telling the bank to pay the specified amount from their account.

Promissory Note

A written promise made by one person (the maker) to pay a fixed sum of money to another person (the payee or a subsequent holder) on demand or on a specified date.

Specific Payee

The designated individual or entity to whom a particular payment is directed or made.

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