If the Fed increases the interest rate, it will increase the supply of money. True or False?

asked Dec 25, 2018 77.7k views

4 votes

If the Fed increases the interest rate, it will increase the supply of money.
True or False?

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6 votes

I think this is false....?

I might be wrong im not sure

Anukalp answered Dec 26, 2018

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4 votes

It is False, because if they do increase interest rate that doesn't mean that the supply of money will increase.

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