Multiple Choice
-In the figure above, if the interest rate is 6 percent,
A) there is a $0.1 trillion excess quantity of money and the interest rate will fall.
B) there is a $0.1 trillion excess demand for money and the interest rate will rise.
C) there is a $0.1 trillion excess quantity of money and the interest rate will rise.
D) the money market is in equilibrium and the interest rate will remain constant.
Correct Answer:
Verified
Correct Answer:
Verified
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