Figure 30-2. On the graph, MS represents the money supply and MD represents money demand. The usual quantities are measured along the axes. 
-Refer to Figure 30-2. If the relevant money-demand curve is the one labeled MD1, then the equilibrium value of money is
A) 0.5 and the equilibrium price level is 2.
B) 2 and the equilibrium price level is 0.5.
C) 0.5 and the equilibrium price level cannot be determined from the graph.
D) 2 and the equilibrium price level cannot be determined from the graph.
Correct Answer:
Verified
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