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If the Quantity of Money Demanded Exceeds the Quantity Supplied

Question 1

Multiple Choice

If the quantity of money demanded exceeds the quantity supplied at the current interest rate, then


A) bond prices and the interest rate will both rise
B) bond prices and the interest rate will both fall
C) bond prices will rise and the interest rate will fall
D) bond prices will fall and the interest rate will rise
E) the value of both stocks and bonds will increase

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