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Figure 34-14 -Refer to Figure 34-14.Households' Desired Money Holdings Are Given by Are

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Figure 34-14 Figure 34-14 -Refer to Figure 34-14.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 34-14.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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