Multiple Choice
Suppose that the interest rate is greater than the equilibrium interest rate.Which of the following statements is true? I.There is an excess quantity of money.
II.The quantity of money automatically increases.
III.The interest rate falls to achieve equilibrium.
A) I only
B) II only
C) III only
D) I and III only
E) None of the above statements are true.
Correct Answer:
Verified
Correct Answer:
Verified
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