Figure 34-1
-Refer to Figure 34-1.Which of the following is correct?
A)If the interest rate is 4 percent,there is excess money demand,and the interest rate will fall.
B)If the interest rate is 3 percent,there is excess money supply,and the interest rate will rise.
C)Starting with an interest rate of 4 percent,the demand for goods and services will increase until the money market reaches a new equilibrium.
D)None of the above is correct.

Question

Figure 34-1 
-Refer to Figure 34-1.Which of the following is correct?
A)If the interest rate is 4 percent,there is excess money demand,and the interest rate will fall. 
B)If the interest rate is 3 percent,there is excess money supply,and the interest rate will rise. 
C)Starting with an interest rate of 4 percent,the demand for goods and services will increase until the money market reaches a new equilibrium. 
D)None of the above is correct.

Quizplus · Accepted Answer

The Answer of Figure 34-1 
-Refer to Figure 34-1.Which of the following is correct?
A)If the interest rate is 4 percent,there is excess money demand,and the interest rate will fall. 
B)If the interest rate is 3 percent,there is excess money supply,and the interest rate will rise. 
C)Starting with an interest rate of 4 percent,the demand for goods and services will increase until the money market reaches a new equilibrium. 
D)None of the above is correct.

Figure 34-1 -Refer to Figure 34-1.Which of the Following Is Correct