Figure 4-5
-In the figure above, suppose that real income is YB and the money market is in equilibrium. The interest rate at this point is ________ to support commodity market equilibrium, so that involuntary inventory changes are ________.
A) too low, positive
B) too low, negative
C) just right, zero
D) too high, positive
E) too high, negative

Question

Figure 4-5 
-In the figure above, suppose that real income is YB and the money market is in equilibrium. The interest rate at this point is ________ to support commodity market equilibrium, so that involuntary inventory changes are ________.
A) too low, positive 
B) too low, negative 
C) just right, zero 
D) too high, positive 
E) too high, negative

Quizplus · Accepted Answer

The Answer of Figure 4-5 
-In the figure above, suppose that real income is YB and the money market is in equilibrium. The interest rate at this point is ________ to support commodity market equilibrium, so that involuntary inventory changes are ________.
A) too low, positive 
B) too low, negative 
C) just right, zero 
D) too high, positive 
E) too high, negative

Figure 4-5 -In the Figure Above, Suppose That Real Income Is YB