If at the prevailing interest rate the demand for money is $3 trillion, and the supply of money is $2.5 trillion, then which of the following is true?
a. There is excess money supply, interest rates must fall in order to achieve an equilibrium in the money market.
b. There is a shortage of money, interest rates must fall in order to achieve an equilibrium in the money market.
c. There is a shortage of money, interest rates must rise in order to achieve an equilibrium in the money market.
d. There is excess money supply, interest rates must rise in order to achieve an equilibrium in the money market.
c
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Fill in the blank(s) with correct word