If the Demand for Money and the Supply of Money

Multiple Choice

If the demand for money and the supply of money both decrease, the equilibrium

A) interest rate will decline, but we cannot predict the change in the equilibrium quantity of money.
B) quantity of money and the equilibrium interest rate will both increase.
C) quantity of money will increase, but we cannot predict the change in the equilibrium interest rate.
D) quantity of money will decline, but we cannot predict the change in the equilibrium interest rate.