Solved

If Both the Demand for Money and the Supply of Money

Question 19

Multiple Choice

If both the demand for money and the supply of money increase,what can we conclude will happen to the equilibrium?


A) The interest rate will fall,but the effect on quantity of money is indeterminate.
B) The interest rate will rise,but the effect on the quantity of money is indeterminate.
C) The quantity of money will increase,but the effect on the interest rate is indeterminate.
D) The quantity of money will fall,but the effect on the interest rate is indeterminate.
E) Both the interest rate and the quantity of money will increase.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents