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Figure 31-1 -Refer to Figure 31-1.If the Current Money Supply Is MS₁,then

Question 11

Multiple Choice

Figure 31-1
Figure 31-1 -Refer to Figure 31-1.If the current money supply is MS<sub>1</sub>,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.

-Refer to Figure 31-1.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.

Correct Answer: