If the Amount of Money Demanded Exceeds the Amount Supplied

question 142

Multiple Choice

If the amount of money demanded exceeds the amount supplied, it can be expected that the:

• A)demand-for-money curve will shift to the left.
• B)money supply curve will shift to the right.
• C)interest rate will rise.
• D)interest rate will fall.

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Definitions:

Reference Pricing

A type of psychological pricing in which a lower-priced item is compared to a more expensive brand in hopes that the consumer will use the higher price as a comparison price.