Figure 16-1

-Refer to Figure 16-1. There is an excess demand for money at an interest rate of
A) 2 percent.
B) 3 percent.
C) 4 percent.
D) None of the above is correct.

Name: Figure 16-1 -Refer to Figure 16-1. There is an excess demand for money at an interest rate of A) 2 percent. B) 3 percent. C) 4 percent. D) None of the above is correct.
Brand: Quizplus
Rating: 4.8 (40 reviews)

Question

Figure 16-1
 
-Refer to Figure 16-1. There is an excess demand for money 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 demand for money exceeds the supply, creating an excess demand for money.

Figure 16-1 -Refer to Figure 16-1. There Is an Excess Demand for an Excess