Use the Figure Below for the Following Questions

question 109

Multiple Choice

Use the figure below for the following questions.
Figure 30-1
-Refer to Figure 30-1. If the money supply is MS₂ and the value of money is 2, how much is the excess demand or supply?

• A)There is an excess demand equal to the distance between A and C.
• B)There is an excess demand equal to the distance between A and B.
• C)There is an excess supply equal to the distance between A and C.
• D)There is an excess supply equal to the distance between A and B.