Final answer:
If the relative size of the shift of money demand is greater than that of money supply, it would lead to a decrease in the equilibrium interest rate.
Step-by-step explanation:
When there are subsequent shifts in money demand due to expected inflation, the equilibrium interest rate may be impacted. In the scenario where the relative size of the shift of money demand is greater than that of money supply, this would lead to a decrease in the equilibrium interest rate.
Let's consider an example: If the demand for money decreases due to expected inflation, people may be less willing to hold onto money because they anticipate that its value will decrease. This results in a shift of the money demand curve to the left. If the size of this shift is relatively larger than any shift in the money supply curve, it would cause the equilibrium interest rate to decrease.
Overall, the decrease in money demand would result in a surplus of money in the market, which lowers the equilibrium interest rate.