If,at some interest rate,the quantity of money demanded is less than the quantity of money supplied,people will desire to
A)sell interest-bearing assets,causing the interest rate to decrease.
B)sell interest-bearing assets,causing the interest rate to increase.
C)buy interest-bearing assets,causing the interest rate to decrease.
D)buy interest-bearing assets,causing the interest rate to increase.

Question

Quizplus · Accepted Answer

When the quantity of money demanded is less than the quantity supplied, people will buy interest-bearing assets, which increases their demand and causes the interest rate to decrease.

If,at Some Interest Rate,the Quantity of Money Demanded Is Less