the prime rate
An increase in the money supply shifts the money supply curve to the right. If you look on your graph, you will see that an increase in money supply will cause the interest rate to decrease. Here's why: Fed increases money supply-->excess supply of money at the current interest rate -->people buy bonds to get rid of their excess money-->increase in the prices of bonds --> decrease in the interest rate.
Decreasing the money supply. Monetary policies are concerned with the increase or decrease of the money supply.
Increase or decrease the money supply
An decrease in the required reserve ratio leads to an increase in the money supply
An increase in the money supplyAn increase in the money supply
An increase in the money supply shifts the money supply curve to the right. If you look on your graph, you will see that an increase in money supply will cause the interest rate to decrease. Here's why: Fed increases money supply-->excess supply of money at the current interest rate -->people buy bonds to get rid of their excess money-->increase in the prices of bonds --> decrease in the interest rate.
Increase or decrease the money supply
Decreasing the money supply. Monetary policies are concerned with the increase or decrease of the money supply.
That would be decrease
Increase or decrease the money supply
An decrease in the required reserve ratio leads to an increase in the money supply
An decrease in the required reserve ratio leads to an increase in the money supply
An increase in the money supplyAn increase in the money supply
a decrease in the money supply
an increase in the money supplyAn increase in the money supply
The most likely effect of the Federal Reserve lowering the discount rate on overnight loans would be an increase in the money supply. an increase in the money supply
increase in money supply