If the money supply exceeds money demand, people will ____ bonds which will cause bond prices to ____ and the

Question

If the money supply exceeds money demand, people will ____ bonds which will cause bond prices to ____ and the nominal interest rate to _____ until money demand equals money supply.

A. sell; fall; rise

B. sell; fall; fall

C. sell; rise; fall

D. buy; fall; rise

E. buy; rise; fall

Answer 1

A. sell; fall; rise