Figure 11-1 -Refer to Figure 11-1. If the money supply is MS 2 and the value of money is 2, which relationship holds?

When the value of money is above its equilibrium level, it indicates that the money supply is greater than the money demand, as a higher value of money suggests a surplus of money relative to the demand for it.

Figure 11-1 -Refer to Figure 11-1. If the money supply is MS 2 and the value of money is 2, which relationship holds?

When the value of money is above its equilibrium level, it indicates that the money supply is greater than the money demand, as a higher value of money suggests a surplus of money relative to the demand for it.

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Figure 11-1 -Refer to Figure 11-1. If the Money Supply Is MS₂

Question 23

Multiple Choice

Figure 11-1 Figure 11-1 -Refer to Figure 11-1. If the money supply is MS<sub>2</sub> and the value of money is 2, which relationship holds? A) The value of money is less than its equilibrium level. B) The price level is higher than its equilibrium level. C) The money demand is greater than the money supply. D) The money supply is greater than money demand.
-Refer to Figure 11-1. If the money supply is MS₂ and the value of money is 2, which relationship holds?

A) The value of money is less than its equilibrium level.
B) The price level is higher than its equilibrium level.
C) The money demand is greater than the money supply.
D) The money supply is greater than money demand.

Correct Answer: