-In the above figure,if the interest rate is 3 per cent per year,the quantity of money demanded is
A)greater than the quantity of money supplied,and the demand for money curve will shift.
B)greater than the quantity of money supplied,and the interest rate will change.
C)less than the quantity of money supplied,and the interest rate will change.
D)greater than the quantity of money supplied,and the supply of money curve will shift.
E)less than the quantity of money supplied,and the demand for money curve will shift.

Question

-In the above figure,if the interest rate is 3 per cent per year,the quantity of money demanded is
A)greater than the quantity of money supplied,and the demand for money curve will shift. 
B)greater than the quantity of money supplied,and the interest rate will change. 
C)less than the quantity of money supplied,and the interest rate will change. 
D)greater than the quantity of money supplied,and the supply of money curve will shift. 
E)less than the quantity of money supplied,and the demand for money curve will shift.

Quizplus · Accepted Answer

When the interest rate is below the equilibrium rate, the quantity of money demanded exceeds the quantity supplied, leading to upward pressure on the interest rate until equilibrium is restored.

-In the Above Figure,if the Interest Rate Is 3 Per