In the money market,a condition of excess supply of money can be eliminated by a ________ in aggregate output or a ________ in the interest rate,everything else held constant.
A)rise;rise
B)rise;fall
C)fall;rise
D)fall;fall

Question

Quizplus · Accepted Answer

An excess supply of money can be eliminated by an increase in aggregate output, which boosts the demand for money, or a decrease in the interest rate, which encourages borrowing and spending, thus reducing the money supply.

In the Money Market,a Condition of Excess Supply of Money