An Indirect Effect of Monetary Policy Is That as the Money

question 350

Multiple Choice

An indirect effect of monetary policy is that as the money supply

• A) increases, interest rates fall, and borrowing and spending increase.
• B) increases, interest rates rise, and borrowing and spending decrease.
• C) decreases, interest rates fall, and borrowing and spending increase.
• D) decreases, interest rates rise, and borrowing and spending increase.

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Definitions:

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