If there is excess money demand,people will
A)deposit more into interest-bearing accounts, and the interest rate will fall.
B)deposit more into interest-bearing accounts, and the interest rate will rise.
C)withdraw money from interest-bearing accounts, and the interest rate will fall.
D)withdraw money from interest-bearing accounts, and the interest rate will rise.

Question

Quizplus · Accepted Answer

When there is excess money demand, people will withdraw money from interest-bearing accounts to hold more cash, leading to a decrease in the supply of loanable funds and causing interest rates to rise.

If There Is Excess Money Demand,people Will