If There Is an Excess Supply of Money

question 106

Multiple Choice

If there is an excess supply of money

• A)individuals sell bonds,causing the interest rate to rise.
• B)individuals sell bonds,causing the interest rate to fall.
• C)individuals buy bonds,causing interest rates to fall.
• D)individuals buy bonds,causing interest rates to rise.

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Definitions:

Adam Smith

Known as the father of modern economics, he was an 18th-century philosopher best known for his theories on free market economics and the invisible hand concept.

Self-Interest

What is in the best interest of and benefit to an individual.

Social Exchange

A concept describing how social stability and change occur through the process of transactions agreed upon by individuals or groups.

Calculated Involvements

Engagements or commitments that are made after careful consideration and planning to achieve specific outcomes.