If, at Some Interest Rate, the Quantity of Money Supplied

question 279

Multiple Choice

If, at some interest rate, the quantity of money supplied is greater than the quantity of money demanded, people will desire to

• A)sell interest-bearing assets, causing the interest rate to decrease.
• B)sell interest-bearing assets, causing the interest rate to increase.
• C)buy interest-bearing assets, causing the interest rate to decrease.
• D)buy interest-bearing assets, causing the interest rate to increase.

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Definitions:

Vague

Lacking clarity or preciseness in thought or expression; not clearly expressed or easily understood.

Ambiguous

Referring to language or statements that have more than one possible interpretation or meaning, often leading to confusion or misunderstanding.

Critical Thinking

The process of actively and skillfully conceptualizing, applying, analyzing, synthesizing, and evaluating information to reach an answer or conclusion.