Figure 17-1 -Refer to Figure 17-1. If the current money supply is MS₁, then A)there is no excess supply or excess demand if the value of money is 2. B)the equilibrium is at point C. C)there is an excess supply of money if the value of money is 1. D)None of the above is correct.

Question

Quizplus · Accepted Answer

The equilibrium is at point C, where the quantity of money demanded equals the quantity of money supplied. At this point, the value of money is 2.

Figure 17-1 -Refer to Figure 17-1. If the Current Money Supply Is