If the quantity of money supplied is greater than the quantity of money demanded,then the
A)price level falls.
B)price of financial assets falls.
C)nominal interest rate falls.
D)nominal interest rate rises.
E)money supply decreases.

Question

Quizplus · Accepted Answer

When the money supply exceeds money demand, there is excess liquidity, leading to a decrease in nominal interest rates as lenders compete to lend out the surplus funds.

If the Quantity of Money Supplied Is Greater Than the Quantity