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If the Nominal Interest Rate Is Below the Equilibrium Value

Question 45

Multiple Choice

If the nominal interest rate is below the equilibrium value, then the quantity demanded of money is ________ than the quantity supplied of money, bond prices will ________, and the nominal interest rate will ________.


A) greater; fall; increase
B) greater; fall; decrease
C) greater; rise; increase
D) less; fall; increase

Correct Answer:

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