If, at a given interest rate and money supply, everybody simultaneously tries to add to thel? money balances, they will do this by trying to bonds, which causes an excess which causes bond prices to and the interest rate to O a. Buy; demand for; rise; fall. b. Sell; demand for; rise; fall. C. Sell; supply of; rise; fall. O d. Sell; supply of; fall; rise. O e. Buy; supply of; fall; rise.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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If, at a given interest rate and money supply, everybody simultaneously tries to add to their
money balances, they will do this by trying to
bonds, which causes an excess
which causes bond prices to
and the interest rate to
O a. Buy; demand for; rise; fall.
O b. Sell; demand for; rise; fall.
O c. Sell; supply of; rise; fall.
O d. Sell; supply of; fall; rise.
O e. Buy; supply of; fall; rise.
Transcribed Image Text:If, at a given interest rate and money supply, everybody simultaneously tries to add to their money balances, they will do this by trying to bonds, which causes an excess which causes bond prices to and the interest rate to O a. Buy; demand for; rise; fall. O b. Sell; demand for; rise; fall. O c. Sell; supply of; rise; fall. O d. Sell; supply of; fall; rise. O e. Buy; supply of; fall; rise.
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