10 6 Money million Refer to the figure If the interest rate

10 6 Money ($ million) Refer to the figure. If the interest rate remains at 5%, there will be an excess demand for money if the demand for money curve hfts from M1 to Mdo 5falls below M Shifts from Mdo to Md remains at Mdo

Solution

\"A\"

The shift from MD1 to Md0. If the money demand curve shifts upward or to the right, there will be an excess demand for money at the given rate.