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.
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.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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