For the following questions, consult the diagram below:
Figure 34-1

-Refer to Figure 34-1.If the current interest rate is 2 percent,
A)there is excess money supply.
B)people will sell more bonds, which drives interest rates up.
C)as the money market moves to equilibrium, people will buy more goods.
D)All of the above are correct.

Question

For the following questions, consult the diagram below:
Figure 34-1
 
-Refer to Figure 34-1.If the current interest rate is 2 percent,
A)there is excess money supply. 
B)people will sell more bonds, which drives interest rates up. 
C)as the money market moves to equilibrium, people will buy more goods. 
D)All of the above are correct.

Quizplus · Accepted Answer

The Answer of For the following questions, consult the diagram below:
Figure 34-1
 
-Refer to Figure 34-1.If the current interest rate is 2 percent,
A)there is excess money supply. 
B)people will sell more bonds, which drives interest rates up. 
C)as the money market moves to equilibrium, people will buy more goods. 
D)All of the above are correct.

For the Following Questions, Consult the Diagram Below