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Money supply and interest rates

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA BT – FIA FBT › Money supply and interest rates

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by Ken Garrett.
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  • December 29, 2018 at 12:12 pm #499441
    draiells
    Member
    • Topics: 123
    • Replies: 141
    • ☆☆☆

    How does an increase in money supply affect interest rates assuming all other things remain the same?

    December 29, 2018 at 9:43 pm #499452
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10637
    • ☆☆☆☆☆

    You would expect interest rates to decrease. Money is a commodity, which if easier to come by, will decrease in price.

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