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If the supply of money increases, what happens in the money market?

If the supply of money increases, what happens in the money market?

A) The interest rate does not change

B) The interest rate falls

C) The interest rate rises

D) Transaction demand for money falls.

E) Transaction demand for money rises.

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B) The interest rate fallsB)... View the full answer

1 comment
  • The money market is an economic model describing the supply and demand for money in a nation. Consumers and businesses have a demand for money, including cash and checking and savings accounts, and they use financial institutions for this purpose
    • princessjane
    • Apr 14, 2016 at 4:58pm

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