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