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If the Nominal Interest Rate Is Above Its Equilibrium Value

Question 102

Multiple Choice

If the nominal interest rate is above its equilibrium value, then


A) people sell financial assets and the interest rate falls.
B) people buy financial assets and the interest rate falls.
C) the demand curve for money shifts rightward and the interest rate rises.
D) the supply curve of money shifts leftward and the interest rate rises.
E) the demand curve for money shifts leftward and the interest rate falls.

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