Figure 1 Interest Rate 4% 3% 2% MS b Money Demand Quantity of Money Refer to Figure 1. If the interest rate is 4 percent, a. there is an excess demand for money equal to the distance between points b and c. b. there is an excess demand for money equal to the distance between points a and b. c. there is an excess supply of money equal to the distance between points b and c. d. there is an excess supply of money equal to the distance between points a and b.

Figure 1 Interest Rate 4% 3% 2% MS b Money Demand Quantity of Money Refer to Figure 1. If the interest rate is 4 percent, a. there is an excess demand for money equal to the distance between points b and c. b. there is an excess demand for money equal to the distance between points a and b. c. there is an excess supply of money equal to the distance between points b and c. d. there is an excess supply of money equal to the distance between points a and b.

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter15: Monetary Theory And Policy

Section: Chapter Questions

Problem 1.1P

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