If there is an excess demand for money, there is an excess
a. supply of bonds and the price of bonds will increase.
b. supply of bonds and the price of bonds will decrease.
c. demand for bonds and the price of bonds will increase.
d. demand for bonds and the price of bonds will decrease.
e. supply of bonds and the price of bonds will not change.
B
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All of the following are examples of transfer payments except
A) welfare benefits to the poor. B) dividend payments to the wealthy. C) Social Security payments to the elderly. D) unemployment compensation to the unemployed.
Bonds issued by a foreign government in its own currency would:
A. be held by the Fed as part of its foreign exchange reserves. B. not be held by the Fed. C. be held by the Fed as part of its securities. D. be held by the Fed as part of its loans.