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As the Interest Rate Falls to Equilibrium in the Market

Question 126

Multiple Choice

As the interest rate falls to equilibrium in the market for money,


A) the quantity of money demanded falls, which would reduce a shortage of money.
B) the quantity of money demanded falls, which would reduce a surplus of money.
C) the quantity of money demanded rises, which would reduce a shortage of money.
D) the quantity of money demanded rises, which would reduce a surplus of money.

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