If there is an excess demand for money,individuals ________ bonds,causing interest rates to ________.
A)sell;rise
B)sell;fall
C)buy;rise
D)buy;fall

Question

Quizplus · Accepted Answer

When there is an excess demand for money, individuals sell bonds to obtain more liquidity. This selling pressure on bonds decreases their prices, which inversely affects interest rates, causing them to rise.

If There Is an Excess Demand for Money,individuals ________ Bonds,causing