Real money demand is greater than the real money supply

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Interest rates explained in this solution

If the real money demand is greater than the real money supply, interest rates must rise to reach equilibrium in the money market as people sell bonds to obtain more money. True or False, and explain?

Reference no: EM1337442

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Real money demand is greater than the real money supply : Real money demand is greater than the real money supply, interest rates must rise to reach equilibrium in the money market as people sell bonds to obtain more money.

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