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Figure 12-1 -Refer to Figure 12-1. If the Current Money Supply Is

Question 91

Multiple Choice

Figure 12-1
Figure 12-1 -Refer to Figure 12-1. 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 12-1. 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: