Figure 17-3

Multiple Choice

Figure 17-3. On the graph, MS represents the money supply and MD represents money demand. The usual quantities are measured along the axes.
-Refer to Figure 17-3. If the relevant money-supply curve is the one labeled MS₁, then the equilibrium price level is

A) 0.5 and the equilibrium value of money is 2.
B) 2 and the equilibrium value of money is 0.5.
C) 0.5 and the equilibrium value of money cannot be determined from the graph.
D) 2 and the equilibrium value of money cannot be determined from the graph.