APFIVE Money Market Disequilibrium
What is the result when the nominal interest rate is below the equilibrium rate in the money market?
A
Increase in unemployment
B
Excess supply of money
C
Excess demand for money
D
Decrease in bond prices
What is the result when the nominal interest rate is below the equilibrium rate in the money market?
Increase in unemployment
Excess supply of money
Excess demand for money
Decrease in bond prices