ECONOMIC HELP! 20 points + brainiest Explain how increasing the money supply affects interest rates. Then explain how expansionary monetary policy affects consumption, investments, and the growth of the economy

1.)

When all else being equal, more money lowers the market price and makes it cheaper for consumers to borrow. Conversely, lower cash increases the market interest rate, making it more expensive for consumers to borrow.

2.)

This is done by increasing the amount of money available in the economy. The expansionary policy aims to encourage aggregate demand growth. ... By increasing the money supply, the interest rate is also lowered, which encourages lending and investment. Increases in consumption and investment lead to higher aggregate demand.

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