If there is excess money supply in the economy,which of the following is most likely to occur?
A) People will buy bonds, raising bond prices and decreasing interest rates.
B) People will buy bonds, raising bond prices and increasing interest rates.
C) People will sell bonds, raising bond prices and decreasing interest rates.
D) People will sell bonds, decreasing bond prices and decreasing the interest rate.
E) People will sell bonds, decreasing bond prices and increasing the interest rate.
Correct Answer:
Verified
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