If there is excess demand for money,then people will
A)deposit more money into interest-bearing accounts,and the interest rate will fall.
B)deposit more money into interest-bearing accounts,and the interest rate will rise.
C)withdraw money from interest-bearing accounts,and the interest rate will fall.
D)withdraw money from interest-bearing accounts,and the interest rate will rise.

Question

Quizplus · Accepted Answer

When there is excess demand for money, people will withdraw money from interest-bearing accounts to hold more cash, leading to a decrease in the supply of loanable funds and causing the interest rate to rise.

If There Is Excess Demand for Money,then People Will