Multiple Choice
If there is excess money demand, what will people do and what happens to the interest rate?
A) People will deposit more into interest-bearing accounts, and the interest rate will fall.
B) People will deposit more into interest-bearing accounts, and the interest rate will rise.
C) People will withdraw money from interest-bearing accounts, and the interest rate will fall.
D) People will withdraw money from interest-bearing accounts, and the interest rate will rise.
Correct Answer:
Verified
Correct Answer:
Verified
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