Suppose the Current Level of Output and the Interest Rate

Multiple Choice

Suppose the current level of output and the interest rate are such that the economy is operating on neither the IS nor LM curve. Which of the following is true for this economy?

A) Financial markets are not in equilibrium.
B) The money supply does not equal money demand.
C) Production does not equal demand.
D) The quantity supplied of bonds does not equal the quantity demanded for bonds.
E) All of the above.