If the economy is located at point 2 in figure 23 5

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154) If the economy is located at point 2 in Figure 23-5, then (a) the interest rate is above the equilibrium level. (b) people are holding more money than they desire. (c) people will sell bonds. (d) only (a) and (b) of the above. Answer: D Question Status: Previous Edition Chapter 23 The Keynesian Framework and the ISLM Model 855 155) If the economy is located at point 2 in Figure 23-5, then 156) If the economy is located at point 2 in Figure 23-5, then 157) If the economy is located at point 2 in Figure 23-5, then 158) If the economy is located at point 2 in Figure 23-5, then (a) the interest rate is below the equilibrium level. (b) people are holding more money than they desire. (c) people will purchase bonds. (d) only (b) and (c) of the above. Answer: D Question Status: Previous Edition 159) If the economy is located at point 4 in Figure 23-5, then
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856 Frederic S. Mishkin • Economics of Money, Banking, and Financial Markets, Seventh Edition 160) If the economy is located at point 4 in Figure 23-5, then 161) If the economy is located at point 4 in Figure 23-5, then 162) If the economy is located at point 4 in Figure 23-5, then (a) the interest rate is below the equilibrium level. (b) people are holding less money than they desire. (c) people will purchase bonds. (d) all of the above. (e) only (a) and (b) of the above. Answer: E Question Status: Previous Edition
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