In the figure given below panel A represents money market equilibrium, panel B represents investment demand, and panel C represents equilibrium real GDP.
Figure 13.3

-Refer to Figure 13.3. When this economy is in equilibrium:
A) investment spending is equal to $800 billion.
B) the interest rate is equal to 4 percent.
C) there is an excess demand for money.
D) the price level will equal $5.
E) real GDP will equal $500 billion.

Question

In the figure given below panel A represents money market equilibrium, panel B represents investment demand, and panel C represents equilibrium real GDP.
Figure 13.3
 
-Refer to Figure 13.3. When this economy is in equilibrium:
A) investment spending is equal to $800 billion. 
B) the interest rate is equal to 4 percent. 
C) there is an excess demand for money. 
D) the price level will equal $5. 
E) real GDP will equal $500 billion.

Quizplus · Accepted Answer

The Answer of In the figure given below panel A represents money market equilibrium, panel B represents investment demand, and panel C represents equilibrium real GDP.
Figure 13.3
 
-Refer to Figure 13.3. When this economy is in equilibrium:
A) investment spending is equal to $800 billion. 
B) the interest rate is equal to 4 percent. 
C) there is an excess demand for money. 
D) the price level will equal $5. 
E) real GDP will equal $500 billion.

In the Figure Given Below Panel a Represents Money Market