If, at Some Interest Rate, the Quantity of Money Supplied

question 279

Multiple Choice

If, at some interest rate, the quantity of money supplied is greater than the quantity of money demanded, people will desire to

• A)sell interest-bearing assets, causing the interest rate to decrease.
• B)sell interest-bearing assets, causing the interest rate to increase.
• C)buy interest-bearing assets, causing the interest rate to decrease.
• D)buy interest-bearing assets, causing the interest rate to increase.

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Definitions:

Esophagus

The muscular tube that conveys food and liquids from the mouth to the stomach.

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A severe, often fatal form of shock characterized by smooth muscle contraction and capillary dilation initiated by cytotropic (IgE class) antibodies.

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A hormone and medication, also known as adrenaline, that increases heart rate, contracts blood vessels, dilates air passages, and participates in the fight-or-flight response.

Allergist

A specialist who diagnoses and treats physical reactions to substances including mold, dust, fur, pollen, foods, drugs, and chemicals.