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An increase in the money supply causes: Group of answer choices interest rates to rise, investment...

An increase in the money supply causes:

Group of answer choices

interest rates to rise, investment spending to rise, and aggregate demand to rise

interest rates to fall, investment spending to fall, and aggregate demand to fall

interest rates to fall, investment spending to rise, and aggregate demand to rise

interest rates to rise, investment spending to fall, and aggregate demand to fall

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Answer #1

Answer : Option C is correct. An increase in money supply causes an interest rate to fall, investment spending to rise as well as aggregate demand has been increased and it means consumer spending has been increased.

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