"Excess Demand" Can Also Be Described as

question 1

Multiple Choice

"Excess demand" can also be described as

• A)excess supply.
• B)the area to the left of the equilibrium price on a supply and demand diagram.
• C)quantity demanded exceeding quantity supplied.
• D)quantity supplied exceeding quantity demanded.
• E)the area to the right of the equilibrium price on a supply and demand diagram.

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Definitions:

Required Reserves

The minimum amount of reserves that a bank must hold, as mandated by the central bank, against its deposit liabilities.

Reserve Requirement

The mandatory percentage of deposits that banks must hold in reserve, either in their vaults or at the central bank, not available for lending.

Government Bond

A debt security issued by a government to support government spending and obligations, typically offering a fixed rate of return.

Money Supply

The comprehensive amount of money assets found in an economy at a noted time.