Refer to the figure above. If John spends his entire income on tables, how many tables can he purchase?

Equilibrium in the money market occurs when

A) the quantity of money demanded is less than the quantity of money supplied. B) the interest rate equals the money supply. C) the quantity of money demanded is more than the quantity of money supplied. D) the quantity of money demanded equals the quantity of money supplied.

Compared to the fixed-price/fixed-wage model, in the Keynesian model with a flexible price but fixed wage, an increase in the money stock will cause output to rise by

a. less while the interest rate will fall by more. b. less and the interest rate to fall by less. c. more but the interest rate to fall by less. d. more and the interest rate to fall by more.