If the Equilibrium Interest Rate in the Money Market Is

question 43

Multiple Choice

If the equilibrium interest rate in the money market is 5%, then at an interest rate of 2%, the quantity of money demanded is _____ than quantity of money supplied.

• A) less than
• B) greater than
• C) equal to
• D) It is impossible to predict which is greater, money demanded or money supplied.

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Definitions:

Benefits

Advantages or positive outcomes that derive from a particular situation or action.

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Natural Law

A philosophy asserting that certain rights or values are inherent by virtue of human nature and can be universally understood through reason.