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Tidy Tidy
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9 years ago
Suppose that households became mistrustful of the banking system and decide to decrease their checking accounts and increase their holdings of currency. Using the money demand and money supply model and assuming everything else is held constant, the equilibrium interest rate should
A) increase.
B) decrease.
C) not change.
D) increase, then decrease.
Textbook 
Essentials of Economics

Essentials of Economics


Edition: 4th
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SydnieSydnie
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9 years ago
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Tidy Author
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9 years ago
Thanks
emilyas19
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Yesterday
Correct Slight Smile TY
gmiannotti
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2 hours ago
Smart ... Thanks!
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