If there is a general shortage of liquidity in the money market then ?

• A. The banks will increase their lending
• B. The short-term interest rate at which the economy’s commercial banks lend to and borrow from each other will fall and the central bank may be expect
• C. The short-term interest rate at which the economy’s commercial banks lend to and borrow from each other will rise and the long-term interest rate ma
• D. the long-term interest rate in the economy will rise and the central bank will raise its interest rate in response
• E. The short-term interest rate at which the economy’s commercial banks lend to and borrow from each other will rise and the central bank may be expect