Interest rate will there be an excess supply of money

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Reference no: EM13802477

Look at the graph of the market for loanable funds found below and answer the following questions:

(a) At which interest rate will there be an excess supply of money? What does this mean?

(b) At this rate, what is the demand for money? What is the supply?

(c) Describe in detail the adjustment process in the money market when there is an excess supply of money.

Reference no: EM13802477

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