If, in the market for money, the amount of money supplied exceeds the amount of money households and businesses want to hold, the interest rate will

A. fall, causing households and businesses to hold less money.
B. rise, causing households and businesses to hold more money.
C. fall, causing households and businesses to hold more money.
D. rise, causing households and businesses to hold less money.

ANSWER:

C. fall, causing households and businesses to hold more money.