Exhibit 14-2 -Refer to the Graph in the Exhibit.Suppose the Supply of Exhibit.Suppose

Multiple Choice

Exhibit 14-2

-Refer to the graph in the exhibit.Suppose the supply of money is given by the supply curve labelled S.Given the demand for money, what is the equilibrium interest rate and what is the quantity of money?  

A)  the equilibrium interest rate is r and the quantity of money is m 
B)  the equilibrium interest rate is r* and the quantity of money is m* 
C)  the equilibrium interest rate is r′ and the quantity of money is m′ 
D)  the equilibrium interest rate is r and the quantity of money is m′