If the Interest Rate Is Above the Equilibrium Interest Rate

question 419

Multiple Choice

If the interest rate is above the equilibrium interest rate, then

• A) people will buy bonds and the interest rate will fall.
• B) people will sell bonds and the interest rate will fall.
• C) the quantity of money demanded exceeds the quantity supplied.
• D) there is an excess demand for money.

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Definitions:

Japanese Infants

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"La" and "Ra"

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