Refer to Figure 34-1. There is an excess supply for money at an interest rate of

A) 4 percent.
B) 2 percent.
C) 3 percent.
D) 5 percent.

Excess Supply

A situation in which the quantity of a good or service supplied is greater than the quantity demanded at the current price, leading to surplus stock.

Money Market

A section of the financial market where short-term financial assets with high liquidity are traded, such as treasury bills and commercial paper.

Interest Rate

The amount charged, expressed as a percentage of the principal, by a lender to a borrower for the use of assets.