Q. An increase in the money supply will lead to an increase in interest rates__
Answer: fall
Notes: When the money supply increases, it means there is more money available in the economy to borrow. This increased supply conforms to the law of demand and tends to lower interest rates or lower the price of borrowing money. Similarly, when the money supply decreases, it will raise interest rates.

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📌 Question Number: 145 in 35. Money Markets & Monetary Policy in the above course in App.