An excess demand for money in the money market causes:
A)a decrease in the equilibrium interest rate. B) a decrease in the money supply. C) an increase in the quantity demanded of money. D) an increase in the equilibrium interest rate.
Which of the following pairs of events will definitely lead to an increase in the equilibrium interest rate?
A) an increase in the required reserve ratio and a decrease in the level of aggregate output. B) the sale of government securities by the Federal Reserve and an increase in the price level. C) a decrease in the discount rate and an increase in the level of aggregate output. D) the purchase of government securities by the Federal Reserve and a decrease in the price level