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3 February, 05:52

If the amount of money demanded is greater than the amount of money supplied, then the interest rate

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  1. 3 February, 07:00
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    The correct answer is: decreases.

    Explanation:

    A larger money demand lower market interest rates, while a smaller demand tends to raise them. In a market economy supply and demand influence prices. In everyday life, people often have a greater demand for money than their reserves will accommodate. To get more money, they borrow from those who have an excess of cash. Interest rates determine that cost.
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