Are you taking CLEP classes? Try clep.ai
| preferred AP College board partner for AP classes
AP Macroeconomics/Unit 4: Financial Sector
Start Practice TestPractice Test
About Exam
hard

Interest Rate Effect on Money Supply

Mark
< Prev
Next >

Assume a country’s central bank maintains a constant monetary base. Which of the following statements best describes how the money supply is affected by changes in market interest rates?

A

It fluctuates inversely with interest rates

B

It remains stable despite interest rate fluctuations

C

It rises during periods of high interest rates

D

It falls during periods of high interest rates

Hint
Did You Know?
Explain Why
Explain All Answers
Check Answer
Show Correct Answer
Report Question

Question Leaderboard

Not enough data yet to show leaderboard.

AI Tutor

How can I help?

APFIVE © 2020.
Email: apfive@apfive.org|Privacy Policy|