If There Is Excess Money Demand, What Will People Do

question 74

Multiple Choice

If there is excess money demand, what will people do and what happens to the interest rate?

• A) People will deposit more into interest-bearing accounts, and the interest rate will fall.
• B) People will deposit more into interest-bearing accounts, and the interest rate will rise.
• C) People will withdraw money from interest-bearing accounts, and the interest rate will fall.
• D) People will withdraw money from interest-bearing accounts, and the interest rate will rise.

---

Definitions:

Interaction

The reciprocal action or influence between entities, such as people, objects, or concepts, within a particular context.

Environment

The surrounding conditions or factors, including social, physical, and economic, that influence individuals' living and working conditions.

TWA

A conceptual framework known as the Theory of Work Adjustment, which focuses on the correspondence between individual needs and work environment for job satisfaction and retention.

Job Adjustment

The process of adapting or becoming better suited to one's job by learning new skills or altering behaviors.