Figure 30-1 -Refer to Figure 30-1.If the current money supply is MS₁,then

Question

Quizplus · Accepted Answer

At a value of money equal to 2, the money market is in equilibrium because the quantity of money supplied (MS₁) is exactly equal to the quantity of money demanded. This can be seen at point B on the graph, where the money supply curve intersects with the money demand curve. At any other value of money, there would be either an excess supply or an excess demand of money. Therefore, choices B and C are incorrect.

Figure 30-1 -Refer to Figure 30-1.If the Current Money Supply Is MS1,then

Figure 30-1 -Refer to Figure 30-1.If the Current Money Supply Is MS₁,then