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.

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter16: Monetary Policy

Section: Chapter Questions

Problem 17SQ

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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.

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