If the demand for money is $100 billion and the supply of money is $200 billion, then the interest rate will:
A)fall.
B)rise.
C)remain unchanged.
D)be in equilibrium.

Name: If the demand for money is $100 billion and the supply of money is $200 billion, then the interest rate will: A)fall. B)rise. C)remain unchanged. D)be in equilibrium.
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Question

Quizplus · Accepted Answer

When the supply of money exceeds the demand, the interest rate tends to fall as there is more money available than needed, leading to lower borrowing costs.

If the Demand for Money Is $100 Billion and the Supply