In the money market,an excess supply of money will:

Question

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When there is an excess supply of money in the money market, investors have more funds available to invest, which typically increases the demand for bonds. As demand for bonds increases, bond prices rise because investors are willing to pay more for them. As bond prices rise, the yield (or interest rate) on those bonds decreases because the fixed interest payment becomes a smaller percentage of the bond's higher price.

In the Money Market,an Excess Supply of Money Will