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german
3 years ago
14

if, in the market for money, the quantity of money demanded exceeds the money supply, the interest rate will

Business
1 answer:
ohaa [14]3 years ago
3 0

Answer:

Explanation:

If, in the market for money, the quantity of money demanded exceeds the money supply, the interest rate will: rise, causing households and businesses to hold less money. Other things equal, if the supply of money is reduced: bond prices will fall because interest rates will rise.

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