At an interest rate of 9 percent there is an A Equilibrium i

At an interest rate of 9 percent, there is an:

A) Equilibrium in the money market
B) Excess demand for money of $100 billion
C) Excess supply of money of $100 billion
D) Excess supply of money of $200 billion

Solution

At 9% interest, demand for money = $100 billion but supply of money = $200 billion

So there is excess supply of money worth (200 - 100) = $100 billion

Correct option (C)