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8. Would increasing the money supply growth place upward or downward pressure on interest rates? 9. Assume that if the U.S. dollar strengthens, it can
8. Would increasing the money supply growth place upward or downward pressure on interest rates?
9. Assume that if the U.S. dollar strengthens, it can place downward pressure on U.S. inflation. Based on this information, how might expectations of a strong dollar affect the demand for loanable funds in the United States and U.S. interest rates? Is there any reason to think that expectations of a strong dollar could also affect the supply of loanable funds? Explain.
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