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

-Refer to Figure 34-1.There is excess money demand at an interest rate of
A)2 percent.
B)3 percent.
C)4 percent.
D)None of the above is correct.

Question

For the following questions, consult the diagram below:
Figure 34-1
 
-Refer to Figure 34-1.There is excess money demand at an interest rate of
A)2 percent. 
B)3 percent. 
C)4 percent. 
D)None of the above is correct.

Quizplus · Accepted Answer

At an interest rate of 2 percent, the quantity of money demanded exceeds the quantity of money supplied, leading to excess money demand.

For the Following Questions, Consult the Diagram Below