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If,in the Money Market the Money Supply Exceeds the Quantity

Question 24

Multiple Choice

If,in the money market the money supply exceeds the quantity of money that households and businesses want to hold,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, meaning that households and businesses hold the same amount of money as before

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