At the Current Interest Rate, Suppose the Supply of Money

question 20

Multiple Choice

At the current interest rate, suppose the supply of money is greater than the demand for money. Given this information, we know that:

• A) the supply of bonds equals the demand for bonds.
• B) the goods market is in equilibrium.
• C) the price of bonds will tend to increase.
• D) the price of bonds will tend to decrease.
• E) production equals demand.

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