-The Table Above Gives the Quantity of Money and Money

question 337

Multiple Choice

-The table above gives the quantity of money and money demand schedules. Suppose that the interest rate is equal to 6 percent. The effect of this interest rate in the money market is that

• A) the money market is in equilibrium.
• B) people buy bonds and the interest rate falls.
• C) people sell bonds and the interest rate falls.
• D) bond prices fall and so the interest rate falls.

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Definitions:

Order

A request or instruction to purchase, sell, or supply goods or services.

Vendor

An individual or company that sells goods or services to another entity, typically as part of the supply chain.

Document

A written, printed, or electronic record that provides evidence of a transaction or commitment.

Check

A written, dated, and signed instrument that contains an unconditional order directing a bank to pay a definite sum of money to a payee.