People might deposit more into interest-bearing accounts,
A)making the interest rate fall, if there is a surplus in the money market.
B)making the interest rate rise, if there is a surplus in the money market.
C)making the interest rate fall, if there is a shortage in the money market.
D)making the interest rate rise, if there is a shortage in the money market.

Question

Quizplus · Accepted Answer

When people deposit more into interest-bearing accounts, it increases the supply of loanable funds, leading to a surplus in the money market, which typically causes interest rates to fall.

People Might Deposit More into Interest-Bearing Accounts