An Increase in the Money Supply Is Likely to

question 213

Multiple Choice

An increase in the money supply is likely to

• A)lower interest rates.
• B)raise interest rates.
• C)decrease the quantity of money demanded.

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Definitions:

Credit Sales

Sales made by a business where the payment is delayed as per an agreement between the buyer and the seller.

Current Ratio

A ratio indicating the capability of a company to cover its obligations that are due in less than one year, calculated through the division of its current assets by its current liabilities.