![SOLVED: On the graph,demonstrate what happens in the short-run if the government increases the money supply Interest Rate, r What happens to the aggregate price level when the government increases the money SOLVED: On the graph,demonstrate what happens in the short-run if the government increases the money supply Interest Rate, r What happens to the aggregate price level when the government increases the money](https://cdn.numerade.com/ask_images/e88b6e253e99469ca3a0e2bafb307324.jpg)
SOLVED: On the graph,demonstrate what happens in the short-run if the government increases the money supply Interest Rate, r What happens to the aggregate price level when the government increases the money
![With the help of a diagram, explain the effect of an increase in money supply on interest rate. | Homework.Study.com With the help of a diagram, explain the effect of an increase in money supply on interest rate. | Homework.Study.com](https://homework.study.com/cimages/multimages/16/instant602171091295248314.png)
With the help of a diagram, explain the effect of an increase in money supply on interest rate. | Homework.Study.com
![If the Federal Reserve decreases money supply, then... a) The money supply curve will shift up and interest rates will increase b) The money supply curve will shift up and interest rates If the Federal Reserve decreases money supply, then... a) The money supply curve will shift up and interest rates will increase b) The money supply curve will shift up and interest rates](https://homework.study.com/cimages/multimages/16/money_market4371062144768860361.png)
If the Federal Reserve decreases money supply, then... a) The money supply curve will shift up and interest rates will increase b) The money supply curve will shift up and interest rates
![macroeconomics - Why does increasing the money supply decrease the interest rate in layman's terms? - Economics Stack Exchange macroeconomics - Why does increasing the money supply decrease the interest rate in layman's terms? - Economics Stack Exchange](https://i.stack.imgur.com/dQFsg.png)