Which of the following statements about the demand and supply of money is most accurate People who are:()
A. buying bonds to reduce their money balances will increase the demand for bonds with an associated increase in interest rates.
B. selling bonds to increase their money balances will reduce the demand for bonds with an associated reduction in interest rates.
C. holding money when interest rates are higher will try to reduce their money balances and, as a result, the demand for money decreases.
参考答案:C
解析:
Buying bonds would drive bond prices up and interest rates down. Selling bonds would have the opposite effect; driving bond prices down and interest rates up. When interest rates are lower, there is an excess demand for money. The supply of money is determined by the monetary authorities.