Consider a Money Market in Which There Is an Excess

question 48

Multiple Choice

Consider a money market in which there is an excess demand for money at the prevailing interest rate.The likely response is ________ until the quantity demanded of money equals the quantity supplied of money.

• A)the corresponding excess demand of bonds will cause the price of bonds to decrease and the interest rate to rise
• B)the money supply curve will shift to the left
• C)the money supply curve will shift to the right
• D)the money demand curve will shift to the right,causing the price of bonds to increase,and the interest rate to fall
• E)the corresponding excess supply of bonds will cause the price of bonds to decrease and the interest rate to rise

---

Definitions:

Privacy Leak

The unauthorized disclosure of personal or confidential information.

Linked Lists

A linear data structure where each element is a separate object called a node, with nodes linked using pointers.

Data Items

Individual units of data, such as variables or constants, used in programming to store values.