Suppose the Quantity of Money Supplied Exceeds the Quantity of Money

question 127

Multiple Choice

Suppose the quantity of money supplied exceeds the quantity of money demanded.Which of the following best describes how the interest rate is affected?  

• A) The interest rate will rise. 
• B) The interest rate will remain the same. 
• C) The interest rate will fall. 
• D) The interest rate will become negative.

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