Suppose the demand for money and the supply of money increase simultaneously.We can:

Question

Quizplus · Accepted Answer

When both the demand for money and the supply of money increase simultaneously, it becomes difficult to accurately predict what will happen to interest rates or bond prices. It depends on the magnitude of the increase in demand and supply, as well as other economic factors that can influence the market. Therefore, option D is the best choice.

Suppose the Demand for Money and the Supply of Money