For the following questions, consult the diagram below.
Figure 15-1
-Refer to Figure 15-1. At which of the following interest rates is there an excess money demand?
A)2 percent
B)3 percent
C)4 percent
D)5 percent

Question

For the following questions, consult the diagram below.
Figure 15-1 
-Refer to Figure 15-1. At which of the following interest rates is there an excess money demand?
A)2 percent 
B)3 percent 
C)4 percent 
D)5 percent

Quizplus · Accepted Answer

At 2 percent interest rate, the quantity of money demanded is greater than the quantity of money supplied, resulting in an excess money demand.

For the Following Questions, Consult the Diagram Below