Figure 34-1
-Refer to Figure 34-1. If the current interest rate is 2 percent,
A)there is an excess supply of money.
B)people will sell more bonds, which drives interest rates up.
C)as the money market moves to equilibrium, people will buy more goods.
D)the quantity of money supplied is greater than the quantity of money demanded.

Question

Figure 34-1  ​
-Refer to Figure 34-1. If the current interest rate is 2 percent,
A)there is an excess supply of money. 
B)people will sell more bonds, which drives interest rates up. 
C)as the money market moves to equilibrium, people will buy more goods. 
D)the quantity of money supplied is greater than the quantity of money demanded.

Quizplus · Accepted Answer

The Answer of Figure 34-1  ​
-Refer to Figure 34-1. If the current interest rate is 2 percent,
A)there is an excess supply of money. 
B)people will sell more bonds, which drives interest rates up. 
C)as the money market moves to equilibrium, people will buy more goods. 
D)the quantity of money supplied is greater than the quantity of money demanded.

Figure 34-1 ​

Figure 34-1