If there is excess money supply, people will deposit more into interest-bearing accounts, and the interest rate will fall. deposit more into interest-bearing accounts, and the interest rate will rise. withdraw money from interest-bearing accounts, and the interest rate will fall. withdraw money from interest-bearing accounts, and the interest rate will rise.
If there is excess money supply, people will deposit more into interest-bearing accounts, and the interest rate will fall. deposit more into interest-bearing accounts, and the interest rate will rise. withdraw money from interest-bearing accounts, and the interest rate will fall. withdraw money from interest-bearing accounts, and the interest rate will rise.
Chapter16: Monetary Policy
Section: Chapter Questions
Problem 17SQ
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If there is
deposit more into interest-bearing accounts, and the interest rate will fall.
deposit more into interest-bearing accounts, and the interest rate will rise.
withdraw money from interest-bearing accounts, and the interest rate will fall.
withdraw money from interest-bearing accounts, and the interest rate will rise.
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