Refer to the figure below. Based on the diagram, the nominal interest rate equals ______ and the money supply equals ____.

Name: Refer to the figure below. Based on the diagram, the nominal interest rate equals ______ and the money supply equals ____.
Brand: Quizplus
Rating: 4.9 (51 reviews)

Question

Quizplus · Accepted Answer

The nominal interest rate is determined by the intersection of the money supply and money demand curves. In this case, the intersection occurs at 5% nominal rate of interest and money supply of 500.

Refer to the Figure Below