If the Nominal Interest Rate Is Above the Equilibrium Level

question 49

Multiple Choice

If the nominal interest rate is above the equilibrium level ________.

• A)purchases of bonds and other assets will cause the interest rate to fall
• B)issuance of bonds and other assets will cause the supply of real money balances to increase
• C)the opportunity cost of holding money is low,and is rising
• D)all of the above
• E)none of the above

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