If the Quantity Supplied of Money Exceeds the Quantity Demanded

question 65

Multiple Choice

If the quantity supplied of money exceeds the quantity demanded of money, people will ________ bonds which will cause bond prices to ________ and the nominal interest rate to ________ until the quantity demanded and quantity supplied of money are equal.

• A)buy; rise; fall
• B)sell; fall; fall
• C)sell; rise; fall
• D)buy; fall; rise

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