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Exhibit: Market for Real Money Balances Based on the Graph

question 80

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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> Based on the graph, the equilibrium levels of interest rates and real money balances are:

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