msphotfame111
msphotfame111 msphotfame111
  • 17-04-2019
  • Business
contestada

15 points :)!! Does reducing interest rates make it so banks make more loans, which overall increases the money supply????

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justicehall2002
justicehall2002 justicehall2002
  • 17-04-2019

Reducing interest rates means that interest is less, which in turn means more money for people to spend so yes I would say it increases the money supply.

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