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When the nominal interest rate is____ the equilibrium interest rate, the quanity of money demanded is...

When the nominal interest rate is____ the equilibrium interest rate, the quanity of money demanded is less than the quanity of money supplied; when the nominal interest rate is______ the equilbrium interest rate, the quanity of money demanded exceeds the quanity of money supplied

A) greater than; less than
B) greater than; equal to
C) less than; greater than
D) equal to; greater than
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Answer #1

Answer: A In case of greater nominal interest rate, demand of money would be lower than supply of money. In case of lower nom

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