If money supply and money demand both increased, what would be the effect on interest rates and investment? Interest rates would increase, and investment would decrease. The change in interest rates and investment would be indeterminate. Interest rates would increase, and investment would increase. Interest rates would decrease, and investment would increase.

If money supply and money demand both increased, what would be the effect on interest rates and investment? Interest rates would increase, and investment would decrease. The change in interest rates and investment would be indeterminate. Interest rates would increase, and investment would increase. Interest rates would decrease, and investment would increase.

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter16: Monetary Policy

Section: Chapter Questions

Problem 17SQ

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