Refer to the information provided in Figure 11.5 below to answer the questions that follow.
Figure 11.5
-Refer to Figure 11.5.Assume the interest rate equals 4% and the money supply decreases from to .If the interest rate remains at 4%

A) money demand will increase.
B) money demand will decrease.
C) there will be an excess demand for money of $200 million.
D) there will be an excess supply of money of $200 million.
Correct Answer:
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