The Figure Given Below Shows Equilibrium in a Money Market

question 96

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 sell U.S. Treasury securities.
• D) The money market equilibrium will move from point B to point C.
• E) The money market equilibrium will move from point C to point A.

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Definitions:

Netted Venation

A vein pattern in leaves where veins form a branching network throughout, common in dicotyledons.

Palmate Venation

A type of leaf venation where several main veins radiate outwards from a single point, resembling the fingers of a hand.

Transpiration

The process by which water is absorbed by plants' roots, moves up through the plants, and is released as water vapor through stomata in the leaves.

Evaporation

The phase change from liquid to gas, occurring at the surface of a liquid, significant in the water cycle and cooling processes.