When the demand for money is greater than the supply of money: A) people offering to sell nonmonetary financial assets must increase the interest rate these assets pay in order to sell them. B) more people will hold money. C) the opportunity cost of holding money will fall. D) interest rates will fall.
When the demand for money is greater than the supply of money: A) people offering to sell nonmonetary financial assets must increase the interest rate these assets pay in order to sell them. B) more people will hold money. C) the opportunity cost of holding money will fall. D) interest rates will fall.
Chapter16: Monetary Policy
Section: Chapter Questions
Problem 17SQ
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When the |
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A) |
people offering to sell nonmonetary financial assets must increase the interest rate these assets pay in order to sell them. |
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more people will hold money. |
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the |
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interest rates will fall. |
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