When the Money Market Is Drawn with the Value of Money

question 129

Multiple Choice

When the money market is drawn with the value of money on the vertical axis,if the price level is above the equilibrium level,there is an

• A)excess demand for money,so the price level will rise.
• B)excess demand for money,so the price level will fall.
• C)excess supply of money,so the price level will rise.
• D)excess supply of money,so the price level will fall.

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Definitions:

Receivables Period

The average number of days it takes for a business to collect payments from its credit sales, also known as debtor's collection period.

Inventory Period

The average time it takes for a company to sell its inventory, indicating the efficiency of its sales and inventory management.

Payables Period

The average number of days it takes a company to pay its invoices from suppliers, reflecting the company's credit terms with its suppliers.

Inventory Period

The average time it takes for inventory to be sold and replaced over a given period.