-In the above figure,if the interest rate is 2 per cent per year,the ________ because ________.
A)demand for money curve will shift;the quantity of money demanded is greater than the quantity of money supplied
B)interest rate will change;the quantity of money demanded is less than the quantity of money supplied
C)demand for money curve will shift;the quantity of money demanded is less than the quantity of money supplied
D)supply of money curve will shift;the quantity of money demanded is greater than the quantity of money supplied
E)interest rate will change;the quantity of money demanded is greater than the quantity of money supplied

Question

-In the above figure,if the interest rate is 2 per cent per year,the ________ because ________.
A)demand for money curve will shift;the quantity of money demanded is greater than the quantity of money supplied 
B)interest rate will change;the quantity of money demanded is less than the quantity of money supplied 
C)demand for money curve will shift;the quantity of money demanded is less than the quantity of money supplied 
D)supply of money curve will shift;the quantity of money demanded is greater than the quantity of money supplied 
E)interest rate will change;the quantity of money demanded is greater than the quantity of money supplied

Quizplus · Accepted Answer

The interest rate will change because the quantity of money demanded is greater than the quantity of money supplied, leading to upward pressure on the interest rate.

-In the Above Figure,if the Interest Rate Is 2 Per