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If there is an excess supply of money A individuals sell bonds, causing the interest rate to rise B individuals sell bonds, causing the interest rate to fall C individuals buy bonds

1) If there is an excess supply of money

A) individuals sell bonds, causing the interest rate to rise.

B) individuals sell bonds, causing the interest rate to fall.

C) individuals buy bonds, causing interest rates to fall.

D) individuals buy bonds, causing interest rates to rise.

2) When the interest rate is above the equilibrium interest rate, there is an excess ________ money and the interest rate will ________.

A) demand for; rise

B) demand for; fall

C) supply of; fall

D) supply of; rise

3) In the market for money, an interest rate below equilibrium results in an excess ________ money and the interest rate will ________.

A) demand for; rise

B) demand for; fall

C) supply of; fall

D) supply of; rise

Jun 18 2020 View more View Less

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