Suppose that the equilibrium nominal interest rate is 4 per cent and the equilibrium quantity of money is $1 billion.At any interest rate above 4 per cent,
A)more than $1 billion will be supplied and the interest rate will rise.
B)there is a shortage of money and the interest rate will rise.
C)more than $1 billion will be supplied and bond prices will fall.
D)less than $1 billion will be demanded and bond prices will increase.
E)less than $1 billion will be demanded and bond prices will fall.

Question

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The Answer of Suppose that the equilibrium nominal interest rate is 4 per cent and the equilibrium quantity of money is $1 billion.At any interest rate above 4 per cent,
A)more than $1 billion will be supplied and the interest rate will rise.
B)there is a shortage of money and the interest rate will rise.
C)more than $1 billion will be supplied and bond prices will fall.
D)less than $1 billion will be demanded and bond prices will increase.
E)less than $1 billion will be demanded and bond prices will fall.

Suppose That the Equilibrium Nominal Interest Rate Is 4 Per