In the money market, if the quantity of money supplied exceeds the quantity of money demanded, the nominal interest rate will_{--------------------} and the prices of assets will_{--------------------} . A)fall; decrease B)rise; decrease C)fall; not change D)rise; increase E)fall; increase

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When the quantity of money supplied exceeds the quantity demanded, there is excess money in the economy. This leads to a decrease in the nominal interest rate as people are willing to lend money at lower rates. As interest rates fall, the prices of assets typically increase because lower interest rates make borrowing cheaper, encouraging investment in assets.

In the Money Market, If the Quantity of Money Supplied