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If in the Market for Money the Quantity of Money

Question 8

Multiple Choice

If in the market for money the quantity of money demanded exceeds the money supply, we would expect the interest rate to:


A) fall, causing households and businesses to hold less money.
B) rise, causing households and businesses to hold less money.
C) rise, causing households and businesses to hold more money.
D) fall, causing households and businesses to hold more money.

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