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Question 125

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Use the following to answer questions :
Exhibit: Market for Real Money Balances Use the following to answer questions : Exhibit: Market for Real Money Balances -(Exhibit: Market for Real Money Balances) Based on the graph, the equilibrium levels of interest rates and real money balances are: A) r<sub>1</sub> and M<sub>1</sub>/P<sub>1</sub> B) r<sub>2</sub> and M<sub>2</sub>/P<sub>2</sub> C) r<sub>3</sub> and M<sub>2</sub>/P<sub>2</sub> D) r<sub>3</sub> and M<sub>3</sub>/P<sub>3</sub>
-(Exhibit: Market for Real Money Balances) Based on the graph, the equilibrium levels of interest rates and real money balances are:


A) r1 and M1/P1
B) r2 and M2/P2
C) r3 and M2/P2
D) r3 and M3/P3

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