Suppose there are just two assets,bonds and money.In this case,an excess demand for money implies

Name: Suppose there are just two assets,bonds and money.In this case,an excess demand for money implies
Brand: Quizplus
Rating: 4.9 (48 reviews)

Question

Quizplus · Accepted Answer

In a two-asset system comprising only bonds and money, if there is an excess demand for money, it logically implies that there is an excess supply of bonds. This is because individuals are preferring to hold money over bonds, leading to less demand for bonds relative to their supply.

Suppose There Are Just Two Assets,bonds and Money