What is the primary effect of an increase in the money supply on interest rates in the money market?

When the money supply increases in the money market, there is more money available for people and businesses to borrow. This extra money makes it easier for banks to lend, which usually leads to a decrease in interest rates. Lower interest rates mean that loans become cheaper, encouraging more people to borrow money for things like buying homes or starting businesses. For example, if a bank lowers its interest rate from 5% to 3%, a family may decide to take out a loan to buy a new house because it costs them less in interest. Overall, when the money supply goes up, it often results in lower interest rates, boosting economic activity.