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if the quantity of money demanded exceeds the quantity supplied, then the interest rate will

A. Change in an uncertain direction

B. Rise

C. Remain Constant

D. Fall

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Darryn D'Souza
Darryn D'SouzaLv10
30 Aug 2020

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Related questions

If the quantity of money demanded exceeds the quantity supplied
 
A. Interest rates will rise.
B. More people will hold money.
C. The opportunity cost of holding will fall.
D. Interest rates will fall.
If there is a shortage in loanable funds then: 
 
(i) the quantity demanded is greater than the quantity supplied and the interest rate will rise.
(ii) the quantity demanded is greater than the quantity supplied and the interest rate will fall.
(iii) the quantity supplied is greater than the quantity demanded and the interest rate will rise.
(iv) the quantity supplied is greater than the quantity demanded and the interest rate will fall.

If the quantity of money demanded exceeds the quantity supplied:

A. the supply-of-money curve will shift to the left.
B. the demand-for-money curve will shift to the right.
C. the interest rate will rise.
D. the interest rate will fall. 

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