In the short run, which of the following actions lower the interest rate?
A) a decrease in bond prices
B) a decrease in the quantity of money
C) an increase in the demand for money
D) a decrease in the demand for money

Question

Quizplus · Accepted Answer

A decrease in the demand for money leads to a lower interest rate as there is less competition for borrowing funds.

In the Short Run, Which of the Following Actions Lower