Figure 12-3

Figure 12-3. On the graph, MS represents the money supply and MD represents money demand. The usual quantities are measured along the axes.

-Refer to Figure 12-3. If the relevant money-supply curve is the one labeled MS₂, then

A) when the money market is in equilibrium, one dollar purchases about one-third of a basket of goods and services.
B) when the money market is in equilibrium, one unit of goods and services sells for 33 cents.
C) there is an excess demand for money if the value of money in terms of goods and services is 0.5.
D) All of the above are correct.