Assume the Money Market Is Initially in Equilibrium

question 28

Multiple Choice

Assume the money market is initially in equilibrium.If the price level increases,then according to liquidity preference theory there is an excess

• A)supply of money until the interest rate increases.
• B)supply of money until the interest rate decreases.
• C)demand for money until the interest rate increases.
• D)demand for money until the interest rate decreases.