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Money supply and interest rates

This topic has 1 reply, 2 voices, and was last updated 6 years ago by Ken Garrett.

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December 29, 2018 at 12:12 pm #499441
draiells
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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
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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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