If the equilibrium interest rate in the money market is 5%,then at an interest rate of 2%,the quantity of money demanded is _____ than the quantity of money supplied.

Question

Quizplus · Accepted Answer

At an interest rate of 2%, which is below the equilibrium rate of 5%, the quantity of money demanded is greater than the quantity of money supplied because people prefer to hold more money when interest rates are lower.

If the Equilibrium Interest Rate in the Money Market Is