Figure 2:MSInterestRate (%) 10%6%4%MD500800 1,000Money ($ million)23. Refer to Figure 2. At an interest rate of 4%, there is:a) an excess supply of money of $200.b) an excess supply of money of S600.c) an excess demand for money of $600.d) an excess demand for money of $200.

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Figure 2: MS Interest Rate (%) 10% 6% 4% MD 500 800 1,000 Money ($ million) 23. Refer to Figure 2. At an interest rate of 4%, there is: a) an excess supply of money of S200. b) an excess supply of money of $600. c) an excess demand for money of $600. d) an excess demand for money of $200.

Figure 2: MS Interest Rate (%) 10% 6% 4% MD 500 800 1,000 Money ($ million) 23. Refer to Figure 2. At an interest rate of 4%, there is: a) an excess supply of money of S200. b) an excess supply of money of $600. c) an excess demand for money of $600. d) an excess demand for money of $200.

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter4: Going Into Debt

Section: Chapter Questions

Problem 4AA

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Question

Figure 2:
MS
Interest
Rate (%) 10%
6%
4%
MD
500
800 1,000
Money ($ million)
23. Refer to Figure 2. At an interest rate of 4%, there is:
a) an excess supply of money of $200.
b) an excess supply of money of S600.
c) an excess demand for money of $600.
d) an excess demand for money of $200.

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