The Indirect Effect of an Increase in the Money Supply

question 266

Multiple Choice

The indirect effect of an increase in the money supply is to

• A) raise interest rates so people will save more.
• B) lower interest rates, which stimulates both investment and consumption spending.
• C) put more cash in people's pockets, thereby increasing aggregate demand.
• D) pay off a portion of the public debt.

---

Definitions:

4-Year-Old

Refers to a child who is four years old, a developmental stage characterized by increased independence, imagination, and motor skills development.

Mask The Taste

Techniques or substances used to hide or alter the flavor of something, especially in pharmaceuticals, to make it more palatable.

Liquid Medication

Medicines that are in liquid form, intended for oral ingestion, injections, or other routes of administration.

Meniscus

The curved surface of a liquid in a tube or a piece of cartilage in the knee that acts as a cushion between the femur and tibia.