When the Money Market Is Depicted in a Diagram with the Value

question 57

Multiple Choice

When the money market is depicted in a diagram with the value of money on the vertical axis, which of the following happens if the price level is above the equilibrium level?

• A)There is a shortage, so the price level will rise.
• B)There is a shortage, so the price level will fall.
• C)There is a surplus, so the price level will rise.
• D)There is a surplus, so the price level will fall.

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