When there is an excess demand for money, individuals and businesses will attempt to purchase bonds.

Name: When there is an excess demand for money, individuals and businesses will attempt to purchase bonds.
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When there is an excess demand for money, individuals and businesses will attempt to hold onto their cash reserves rather than investing in bonds. This is because the demand for money is greater than the demand for bonds, causing the price of bonds to decrease and the yield to increase.

When There Is an Excess Demand for Money, Individuals and Businesses