For the following questions, consult the diagram below.
Figure 15-1
-Refer to Figure 15-1. At the interest rate specified, which of the following is most likely to happen?
A)If the interest rate is 4 percent, there is excess money demand, and the interest rate will fall.
B)If the interest rate is 3 percent, there is excess money supply, and the interest rate will rise.
C)If the interest rate is 4 percent, the demand for goods will rise when the money market is in its new equilibrium.
D)If the interest rate is 2 percent, there is an excess supply of money and the interest rates will rise.

Question

For the following questions, consult the diagram below.
Figure 15-1 
-Refer to Figure 15-1. At the interest rate specified, which of the following is most likely to happen?
A)If the interest rate is 4 percent, there is excess money demand, and the interest rate will fall. 
B)If the interest rate is 3 percent, there is excess money supply, and the interest rate will rise. 
C)If the interest rate is 4 percent, the demand for goods will rise when the money market is in its new equilibrium. 
D)If the interest rate is 2 percent, there is an excess supply of money and the interest rates will rise.

Quizplus · Accepted Answer

The Answer of For the following questions, consult the diagram below.
Figure 15-1 
-Refer to Figure 15-1. At the interest rate specified, which of the following is most likely to happen?
A)If the interest rate is 4 percent, there is excess money demand, and the interest rate will fall. 
B)If the interest rate is 3 percent, there is excess money supply, and the interest rate will rise. 
C)If the interest rate is 4 percent, the demand for goods will rise when the money market is in its new equilibrium. 
D)If the interest rate is 2 percent, there is an excess supply of money and the interest rates will rise.

For the Following Questions, Consult the Diagram Below