Ms. Interest Rate (%) 5% Md 150 Money ($ million) 9. Refer to Figure 1. At an interest rate of 4%, there is a: a) excess demand for money and the interest rate will decline. b) excess demand for money and the interest rate will rise. c) excess supply of money and the interest rate will decline. d) excess supply of money and the interest rate will rise.
Ms. Interest Rate (%) 5% Md 150 Money ($ million) 9. Refer to Figure 1. At an interest rate of 4%, there is a: a) excess demand for money and the interest rate will decline. b) excess demand for money and the interest rate will rise. c) excess supply of money and the interest rate will decline. d) excess supply of money and the interest rate will rise.
Chapter15: Monetary Theory And Policy
Section: Chapter Questions
Problem 1.1P
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