Suppose the Market for Money, Drawn with the Value of Money

question 190

Multiple Choice

Suppose the market for money, drawn with the value of money on the vertical axis and the quantity of money on the horizontal axis, is in equilibrium. If the money supply increases, then at the old value of money there is an

• A)excess demand for money that will result in an increase in spending.
• B)excess demand for money that will result in a decrease in spending.
• C)excess supply of money that will result in an increase in spending.
• D)excess supply of money that will result in a decrease in spending.

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