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

Question

Quizplus · Accepted Answer

An increase in the demand for money, without a corresponding increase in the supply, leads to higher interest rates as people and businesses are willing to pay more to borrow money.

In the Short Run, Which of the Following Actions Raises