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- Topic: Money Supply and Interest Rate
| Author | Topic: Money Supply and Interest Rate |
|---|---|
| sunrise @2008-07-11 03:17:40 |
Holding other things constant, what is the effect of lowering interest rate and decreasing money supply at the same time? Thanks |
| yellowbean @2008-07-14 18:33:44 |
Not sure what that means exactly. Lowering interest rates is a way of expanding the money supply so I'm not sure what gets held constant. If this is a question in some review guide the answer is probably something like velocity of money increases. |
