If the Equilibrium Interest Rate in the Money Market Is

question 72

Multiple Choice

If the equilibrium interest rate in the money market is 5%, then at an interest rate of 2% sellers of interest-bearing financial assets _____ interest rates to find willing buyers.

• A) must offer higher
• B) can offer lower
• C) can offer 2%
• D) Sales of financial assets do not depend on the rate offered.

---

Definitions:

Hypothesized Reason

An assumed explanation underlying an observed phenomenon or a prediction in research, subject to testing.

Significance Level

The probability of rejecting the null hypothesis when it is actually true, usually denoted as alpha (α).

Null Hypothesis

The assumption for a statistical test that there is no association between two observed phenomena or no difference among groups.

Population

In statistics, this term refers to the entire group of individuals or instances about which you are interested in making conclusions.