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If,in the Money Market,the Quantity of Money Demanded Exceeds the Money

Question 22

Multiple Choice

If,in the money market,the quantity of money demanded exceeds the money supply,we would expect the interest rate to:


A) fall, causing households and businesses to hold less money
B) rise, causing households and businesses to hold less money
C) rise, causing households and businesses to hold more money
D) fall, causing households and businesses to hold more money
E) stay the same, causing no change in the money held by households and businesses

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