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.

• A)fall;liquidity
• B)fall;risk
• C)rise;liquidity
• D)rise;risk

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Definitions:

Deducts

Refers to the act of subtracting an amount from a total, often used in accounting and finance to calculate net values.

Advanced

Refers to levels of progress or development that are ahead in terms of technology, ideas, or methods.

Interest Expense

This is the cost incurred by an entity for borrowed funds, usually presented as an expense on the income statement.

Operating Expense

Expenses incurred through normal business operations, such as rent, utilities, and payroll.