If There Is an Excess Supply of Money

question 28

Multiple Choice

If there is an excess supply of money

• A) the interest rate falls.
• B) the interest rate rises.
• C) the real money supply shifts left to make an equilibrium.
• D) the real money supply shifts right to make an equilibrium.
• E) the interest rate stays constant, but consumer confidence falters.

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Definitions:

Unwarranted Risk

Refers to taking actions or making decisions that involve unnecessary or avoidable danger or hazard.

Hazing

The practice of subjecting newcomers to abusive or humiliating tricks and ridicule, often as a form of initiation.

Cohesion-Performance Relationship

A concept in organizational and social psychology that explores how the cohesiveness of a group influences its overall performance.

Bidirection

Pertaining to or involving movement, influence, or action in two opposite directions.