Suppose that the equilibrium nominal interest rate is 5 percent and the equilibrium quantity of money is $1 trillion. At any interest rate below 5 percent,
A) the supply of money will decrease.
B) there will be a surplus of money and bond prices will increase.
C) the interest rate will fall and bond prices will fall.
D) there will be a surplus of money and bond prices will fall.
E) the interest rate will rise and bond prices will fall.
E
Economics
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Indicate whether the statement is true or false
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