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Figure 34-1 -Refer to Figure 34-1.Which of the Following Is Correct

question 19

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Figure 34-1 Figure 34-1   -Refer to Figure 34-1.Which of the following is correct? A) If the interest rate is 4 percent,there is excess money demand,and the interest rate will fall. B) If the interest rate is 3 percent,there is excess money supply,and the interest rate will rise. C) Starting with an interest rate of 4 percent,the demand for goods and services will increase until the money market reaches a new equilibrium. D) None of the above is correct.
-Refer to Figure 34-1.Which of the following is correct?


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