How do changes in interest rates affect the money supply?
a.
as interest rates fall, people generally hold more cash, restricting the money supply.
b.
as interest rates rise, people generally keep their wealth in assets that pay returns, expanding the money supply.
c.
as interest rates level off, people charge more and hold more cash, expanding the money supply.
d.
as interest rates rise, people generally keep their wealth in assets that pay returns, restricting the money supply.

The correct answer is D.

When interest rates are high, borrowing money becomes expensive and not very demanded, but investment retributions are very attractive. In this scenario, economic agents choose to invest in assets that pay those high returns (rather than starting investment projects which require borrowing), there will be a lower amount of money in circulation in the economy, and therefore there has been a contraction in the money supply.

a is the final : )

what was the significance of the plessy vs ferguson ruling and jim crow laws

answer the impact. plessy v. ferguson allowed 'separate but equal, also known as segregation, to become law in the united states