The Figure Given Below Shows Equilibrium in a Money Market

question 101

Multiple Choice

The figure given below shows equilibrium in a money market. Which of the following will be observed if the money supply curve shifts from S to S' while the rate of interest remains at "r"?

• A) There will be an excess demand for money.
• B) There will be an excess supply of money.
• C) The Fed will buy U.S. Treasury securities.
• D) The quantity of money demanded will fall.
• E) The quantity of money supplied will fall.

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Definitions:

Cladistic Analysis

A method of analyzing the evolutionary relationships between groups of organisms by classifying them based on common ancestry.

Outgroup

In cladistics, a taxon that represents an approximation of the ancestral condition; the outgroup is related to the ingroup (the members of the group under study) but separated from the ingroup lineage before they diversified.

Diverges

Moves or extends in different directions from a common point, or becomes fundamentally different in character or form.

Consortium

An association, typically of several business companies, created to undertake a project that is beyond the resources of any one member.