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If the Quantity of Money Demanded Exceeds the Money Supply,what

Question 37

Multiple Choice

If the quantity of money demanded exceeds the money supply,what will the interest rate do?


A) Rise,causing people to hold less money.
B) Fall,causing people to hold less money.
C) Rise,causing people to hold more money.
D) Fall,causing people to hold more money.
E) Remain unchanged,but the demand for money would decrease.

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