s8

1 pts Question 8 Assume the market is initially at Point 3 in the following figure. Which of the following statements provides an accurate description about the market in a short-run equilibrium analysis? Interest rate, R Real money supply 2 R2 Aggregate real money demand L(R, Y) R. R3 3 Aggregate real money demand L(R, Y) RT R3 1 1 02 MS P (= Q') Q3 Real money holdings O Price level will change to restore market equilibrium. Interest rate will increase to R2 to restore market equilibrium. R3 is the current equilibrium interest rate. O There is an excessive supply of real money. O At point 3, the demand for money exceeds the supply