If at Some Interest Rate the Quantity of Money Supplied

question 85

Multiple Choice

If at some interest rate the quantity of money supplied is greater than the quantity of money demanded, what will people desire to do and what happens to the interest rate?

• A) People will sell interest-bearing assets, causing the interest rate to decrease.
• B) People will sell interest-bearing assets, causing the interest rate to increase.
• C) People will buy interest-bearing assets, causing the interest rate to decrease.
• D) People will buy interest-bearing assets, causing the interest rate to increase.

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Definitions:

Bivens Case

Legal proceedings that allow individuals to sue federal government officials for violations of their constitutional rights.

Permanent Injunction

A court order that permanently prohibits or mandates specific actions by a party.

Market Value Ethics

The ethical considerations surrounding the determination and influence of the market value of goods and services.

Ethical Relativism

A system of ethical thought that says there is no objective or absolute standard of right and wrong.