Figure 30-2

Multiple Choice

Figure 30-2.On the graph,MS represents the money supply and MD represents money demand.The usual quantities are measured along the axes.
-Refer to Figure 30-2.If the relevant money-demand curve is the one labeled MD₁,then

A) when the money market is in equilibrium,one dollar purchases one-half of a basket of goods and services.
B) when the money market is in equilibrium,one unit of goods and services sells for 2 dollars.
C) there is an excess demand for money if the value of money in terms of goods and services is 0.375.
D) All of the above are correct.