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When banks make loans, they put more money into the economy. This increases the _____.

money supply
interest rates
stock prices

User Theisenp
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2 Answers

2 votes

Answer:

money supply

Step-by-step explanation:

User Alexey Belkov
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The question itself says that the banks, when they make loans 'put more money into the economy" - this means that the amount of money will increase and that the money supply (the amount of available money) will increase too.

The correct answer is "money supply"
User Kyr Dunenkoff
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