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Figure 34-8 ​

Question 199

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Figure 34-8 Figure 34-8 ​ -Refer to Figure 34-8. Households' desired money holdings are given by MD<sub>1</sub>. If the current rate of interest is r<sub>3</sub>, then there is excess _____. Households will _____ interest-earning assets, which causes the interest rate to _____. ​
-Refer to Figure 34-8. Households' desired money holdings are given by MD1. If the current rate of interest is r3, then there is excess _____. Households will _____ interest-earning assets, which causes the interest rate to _____.

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