When the money market is drawn with the value of money on the vertical axis,if the price level is below the equilibrium level,there is an
A)excess demand for money,so the price level will rise.
B)excess demand for money,so the price level will fall.
C)excess supply of money,so the price level will rise.
D)excess supply of money,so the price level will fall.

Question

Quizplus · Accepted Answer

If the price level is below the equilibrium level, there is an excess supply of money, leading to an increase in the price level as people spend more money.

When the Money Market Is Drawn with the Value of Money