A) A lower interest rate but the same quantity of money
B) A higher interest rate but the same quantity of money
C) A higher quantity of money but lower interest rates
D) A higher quantity of money but the same interest rate
Correct Answer: B
Solution :
An outward shift in the demand for money, other things being equal should lead to a higher interest rate but the same quantity of money. The supply will not increase but with more demand the price (the interest rate) should increase.You need to login to perform this action.
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