If the fed expands the money supply by $1 trillion, what will happen in the money market?
a. none of the above.
b. the equilibrium interest rate will rise, and less money will be exchanged in equilibrium.
c. the equilibrium interest rate will fall, and more money will exchanged in equilibrium.
d. the equilibrium interest rate will not change.
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Home » Business » If the fed expands the money supply by $1 trillion, what will happen in the money market? a. none of the above. b. the equilibrium interest rate will rise, and less money will be exchanged in equilibrium. c.