Can anyone helps to explain the links between changes in the nations money supply the interest rate investment spending aggregate demand and real GDP and the price level?

Hello tony:

Homework?? My answer ain't going to get you a good grade.

I can tell you that interest rate is the cost of money. When money is in short supply, it costs more. When there's a lot of it around, it costs less.

Now, I'm not familiar with fancy words like "investment spending aggregate" or real GDP. All I know is when you increase the money supply without a corresponding increases in goods and services, prices go up.

excon