Multiple Choice
Which of the following properly describes the interest rate effect?
A) As the money supply increases, the interest rate falls, so spending rises.
B) As the money supply increases, the interest rate rises, so spending falls.
C) As the price level increases, the interest rate falls, so spending rises.
D) As the price level increases, the interest rate rises, so spending falls.
Correct Answer:
Verified
Correct Answer:
Verified
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