1.

Figure 11-1 Value of Money MS, MS, Money Demand "3 4. Quantity of Money Refer to Figure 11-1. If the money supply is MS2 and the value of money is 2, how much is the excess demand or supply? a. There is an excess supply equal to the distance between A and C. b. There is an excess demand equal to the distance between A and B. C. There is an excess demand equal to the distance between A and C. d. There is an excess supply equal to the distance between A and B. Figure 15-1 Interest MS Rate Q96 =JrosessescssssseeNggoessesssssessssnsccsssssees Money Demand Quantity of Money Refer to Figure 15-1. What is most likely to happen if the interest rate is equal to 47 a. There is an excess supply of money, and the interest rate will rise. b. There is an excess supply of money, and the interest rate will fall. C. There is an excess demand for money, and the interest rate will fall. d. There is an excess demand for money, and the interest rate will rise