-In the above figure, if the interest rate is 8 percent per year, the quantity of money demanded is
A) less than the quantity of money supplied and the interest rate will change.
B) greater than the quantity of money supplied and the interest rate will change.
C) less than the quantity of money supplied and the demand curve for money will shift.
D) greater than the quantity of money supplied and the demand curve for money will shift.
E) greater than the quantity of money supplied and the supply curve of money will shift.

Question

-In the above figure, if the interest rate is 8 percent per year, the quantity of money demanded is
A) less than the quantity of money supplied and the interest rate will change. 
B) greater than the quantity of money supplied and the interest rate will change. 
C) less than the quantity of money supplied and the demand curve for money will shift. 
D) greater than the quantity of money supplied and the demand curve for money will shift. 
E) greater than the quantity of money supplied and the supply curve of money will shift.

Quizplus · Accepted Answer

The quantity of money demanded is less than the quantity of money supplied, so the interest rate will change to bring the two quantities into equilibrium.

-In the Above Figure, If the Interest Rate Is 8