Multiple Choice
If at some interest rate the quantity of money demanded is greater than the quantity of money supplied, what will people desire to do and what will happen to the interest rate?
A) People will sell interest-bearing assets, causing the interest rate to decrease.
B) People will sell interest-bearing assets, causing the interest rate to increase.
C) People will buy interest-bearing assets, causing the interest rate to decrease.
D) People will buy interest-bearing assets, causing the interest rate to increase.
Correct Answer:
Verified
Correct Answer:
Verified
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