According to the Theory of Liquidity Preference, If the Supply

Multiple Choice

According to the theory of liquidity preference, if the supply of real money balances exceeds the demand for real money balances, individuals will:

A) sell interest-earning assets in order to obtain non-interest-bearing money.
B) purchase interest-earning assets in order to reduce holdings of non-interest-bearing money.
C) purchase more goods and services.
D) be content with their portfolios.