The initial effect of an increase in the money suppl... - Solved MCQs & Answer

742EconomicsMedium

The initial effect of an increase in the money supply is to?

Aincrease the interest rate

Bdecrease the price level

Cincrease the price level

Ddecrease the interest rate

Correct answer

C. increase the price level

Explanation

The correct answer is increase the price level.

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