If the Amount of Money Demanded Exceeds the Amount Supplied

question 366

Multiple Choice

If the amount of money demanded exceeds the amount supplied, the

• A) demand-for-money curve will shift to the left.
• B) money-supply curve will shift to the right.
• C) interest rate will rise.
• D) interest rate will fall.

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Definitions:

Need Recognition

The first stage in the consumer decision process, occurring when an individual perceives a difference between their current state and a desired state.

Bounded Rationality

A concept suggesting that individuals make decisions based on limited information, limited time, and their own limited cognitive processing capacity.

Biopsychologist

An expert in the field of biopsychology, analyzing how the brain, neurons, and nervous system influence thoughts, behaviors, and emotions.

Unconscious Thoughts

Relates to ideas, memories, and desires that are outside of conscious awareness but can influence behavior and emotions.