When the interest rate is above the equilibrium interest rate,there is an excess ________ money and the interest rate will ________.
A)demand for;rise
B)demand for;fall
C)supply of;fall
D)supply of;rise

Question

Quizplus · Accepted Answer

When the interest rate is above the equilibrium interest rate, there is an excess supply of money because less people want or can afford to borrow at higher rates. This excess supply leads to the interest rate falling as lenders lower rates to attract borrowers.

When the Interest Rate Is Above the Equilibrium Interest Rate,there