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kodGreya [7K]
3 years ago
8

If the money supply exceeds money demand, people will ____ bonds which will cause bond prices to ____ and the nominal interest r

ate to _____ until money demand equals money supply. A. buy; rise; fall
B. sell; fall; fall
C. sell; rise; fall
D. buy; fall; rise
Business
1 answer:
Stella [2.4K]3 years ago
5 0

Answer:

A. buy; rise; fall

Explanation:

As for the provided information, we know,

As the supply of money exceeds the demand people will have more investing power, accordingly people will <u><em>buy</em></u> more bonds,

as more and more people will try to buy the bonds the price for bond because of high demand will automatically due to demand and supply proportion will <em><u>rise,</u></em>

and then to control the demand of bond, and control the purchase of bond, the nominal interest rate provided on bonds will <em><u>fall.</u></em>

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