Figure 15-1
-Refer to Figure 15-1. What is most likely to happen if the interest rate is equal to 2?
A) There is an excess demand for money, and the interest rate will fall.
B) There is an excess supply of money, and the interest rate will rise.
C) There is an excess demand for money, and the interest rate will rise.
D) There is an excess supply of money, and the interest rate will fall.

Question

Figure 15-1 
-Refer to Figure 15-1. What is most likely to happen if the interest rate is equal to 2?
A) There is an excess demand for money, and the interest rate will fall. 
B) There is an excess supply of money, and the interest rate will rise. 
C) There is an excess demand for money, and the interest rate will rise. 
D) There is an excess supply of money, and the interest rate will fall.

Quizplus · Accepted Answer

If the interest rate is at 2 and there is an excess demand for money, the interest rate will rise as people are willing to pay more to borrow money.

Figure 15-1 -Refer to Figure 15-1. What Is Most Likely to Happen