An expanded money supply ________.
A: reduces the cost of borrowing
B: increases interest rates
C: makes it difficult for financial institutions to lend money
D: diminishes entrepreneurial initiatives in a country
A: reduces the cost of borrowing
B: increases interest rates
C: makes it difficult for financial institutions to lend money
D: diminishes entrepreneurial initiatives in a country
举一反三
- The main way commercial banks make money is to take the deposit money at higher interest and lend it out at much lower interest rates、
- Of the four effects on interest rates from an increase in the money supply, the initial effect is, generally, the ________
- The Fed increases the money supply by
- It is believed that high interest rates （） people from borrowing money from the commercial banks. A: discourage B: decrease C: disgust D: disturb
- When the interest rate falls in the money market, the quantity of money demanded ________ and the quantity of money supplied ________. A: increases; decreases B: decreases; increases C: stays the same; decreases D: increases; stays the same