If, at some interest rate, the quantity of money demanded is greater than the quantity of money supplied, people will desire to
A)sell interest-bearing assets, causing the interest rate to decrease.
B)sell interest-bearing assets, causing the interest rate to increase.
C)buy interest-bearing assets, causing the interest rate to decrease.
D)buy interest-bearing assets, causing the interest rate to increase.

Question

Quizplus · Accepted Answer

When the quantity of money demanded exceeds the quantity supplied, people will sell interest-bearing assets to obtain more money, which increases the supply of these assets and causes the interest rate to rise.

If, at Some Interest Rate, the Quantity of Money Demanded