​The Figure Given Below Shows Equilibrium in a Money Market

question 8

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"? Figure 15.2

• 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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