Multiple Choice
If an increase in the money supply causes people to buy more financial assets,
A) securities prices go up, interest rates will fall, and spending on plant and equipment falls.
B) securities prices go up, interest rates will rise, and spending on plant and equipment falls.
C) securities prices go up, interest rates will fall, and spending on plant and equipment rises.
D) securities prices go up, interest rates will rise, and spending on plant and equipment rises.
Correct Answer:
Verified
Correct Answer:
Verified
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