If the Nominal Interest Rate Is Above Its Equilibrium Value

question 42

Multiple Choice

If the nominal interest rate is above its equilibrium value, then

• A)people sell financial assets and the interest rate falls.
• B)the demand curve for money shifts leftward and the interest rate falls.
• C)people buy financial assets and the interest rate falls.
• D)the supply curve of money shifts leftward and the interest rate rises.
• E)the demand curve for money shifts rightward and the interest rate rises.

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