For the following questions, consult the diagram below:
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)If the interest rate is 4 percent, the demand for goods will rise when the money market is in its new equilibrium.
D)None of the above is correct.

Question

For the following questions, consult the diagram below:
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)If the interest rate is 4 percent, the demand for goods will rise when the money market is in its new equilibrium. 
D)None of the above is correct.

Quizplus · Accepted Answer

The Answer of For the following questions, consult the diagram below:
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)If the interest rate is 4 percent, the demand for goods will rise when the money market is in its new equilibrium. 
D)None of the above is correct.

For the Following Questions, Consult the Diagram Below