Multiple Choice
If households and firms find they are holding less money than desired, they will
A) buy bonds, and the interest rate will fall.
B) sell bonds, and the interest rate will rise.
C) buy bonds, and the interest rate will rise.
D) sell bonds, and the interest rate will fall.
E) buy goods, and the price level will rise.
Correct Answer:
Verified
Correct Answer:
Verified
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