An Excess Demand for Money Will Result in All the Following

question 37

Multiple Choice

An excess demand for money will result in all the following, except:

• A)an excess supply of bonds.
• B)a rise in investment spending.
• C)a fall in bond prices.
• D)a fall in consumption spending.
• E)a fall in equilibrium real GDP.

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Definitions:

Consumer Binge

A period characterized by excessive spending and consumption by consumers.

Bank Credit Cards

Financial instruments issued by banks that allow holders to borrow funds up to a predetermined limit for purchases or cash withdrawals.

Durable Goods

Goods that are designed to last and be used over a long period, such as vehicles, appliances, and furniture.

Nondurable Goods

Goods that are consumed or are only usable for a short period of time before they are depleted or become useless.