If the Quantity Supplied of Money Is Less Than the Quantity

question 120

Multiple Choice

If the quantity supplied of money is less than 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)sell; fall; rise
• B)sell; fall; fall
• C)sell; rise; fall
• D)buy; fall; rise

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Definitions:

Mitigate

Mitigate means to make less severe, serious, or painful; in legal and business contexts, it often refers to actions taken to reduce risks or minimize the impact of damages.

Damage

A monetary compensation that a party is legally obligated to pay to another as a result of loss or injury.

Bankruptcy

A legal process through which individuals or businesses unable to meet their financial obligations can seek relief from some or all of their debts.

Discharge

The release or dismissal of a particular obligation, debt, or accusation, often legally sanctioned.