If the Quantity of Money Demanded Exceeds the Quantity Supplied

question 108

Multiple Choice

If the quantity of money demanded exceeds the quantity supplied,

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

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Definitions:

Situation

The set of all external and internal factors that are present at a given time and place, influencing an individual's actions and decisions.

Information-processing Approach

A model in psychology that describes cognition as the processing of information through a system that works similarly to a computer.

Computer

An electronic device capable of processing, storing, and displaying information for various tasks.

Sensory Impressions

Information gathered by the senses (sight, smell, touch, taste, and hearing) that shapes our understanding of the environment.