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    Principles of Macroeconomics Study Set 8
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    Exam 21: The Influences of Monetary and Fiscal Policy on Aggregate Demand: How Monetary Policy Influences Aggregate Demand
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    The Interest Rate Would Fall and the Quantity of Money
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The Interest Rate Would Fall and the Quantity of Money

Question 100

Question 100

Multiple Choice

The interest rate would fall and the quantity of money demanded would


A) increase if there were a surplus in the money market.
B) increase if there were a shortage in the money market.
C) decrease if there were a surplus in the money market.
D) decrease if there were a shortage in the money market.

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