-In the Figure Above, If the Interest Rate Is 6

question 347

Multiple Choice

-In the figure above, if the interest rate is 6 percent

• A) there is a $0.1 trillion excess quantity of money and the interest rate will rise.
• B) there is a $0.1 trillion excess quantity of money and the interest rate will fall.
• C) the money market is in equilibrium and the interest rate will remain constant.
• D) there is a $0.1 trillion excess demand for money and the interest rate will rise.

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