An increase in the bank rate will result in _____.
A)an increase in the money supply.
B)an increase in the monetary base.
C)a decrease in the monetary base.
D)no change in the monetary base.

Question

Quizplus · Accepted Answer

An increase in the bank rate typically leads to higher borrowing costs for banks, which can reduce the monetary base as banks may borrow less from the central bank.

An Increase in the Bank Rate Will Result in _____