If the interest rate is below the equilibrium, how is equilibrium achieved in the money market?
A) People buy goods to get rid of their excess money, lowering the price of goods and raising the interest rate.
B) People sell goods to get rid of their excess money, lowering the price of goods and raising the interest rate.
C) People sell bonds to get rid of their excess money, lowering the price of bonds and raising the interest rate.
D) People sell bonds to try and raise more money, lowering the price of bonds and raising the interest rate.
E) People buy bonds to get rid of their excess money, raising the price of bonds and raising the interest rate.
Correct Answer:
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