It is assumed that households and businesses want to hold for transactions purposes an amount of money equal to one-half of the GDP.The table shows the amounts of money that households and businesses want to hold as an asset at various interest rates. Refer to the information above.If the GDP is $300 and the supply of money is $230, the equilibrium interest rate will be:
A)8 percent.
B)6 percent.
C)2 percent.
D)4 percent.

Question

It is assumed that households and businesses want to hold for transactions purposes an amount of money equal to one-half of the GDP.The table shows the amounts of money that households and businesses want to hold as an asset at various interest rates.  Refer to the information above.If the GDP is $300 and the supply of money is $230, the equilibrium interest rate will be:
A)8 percent. 
B)6 percent. 
C)2 percent. 
D)4 percent.

Quizplus · Accepted Answer

The Answer of It is assumed that households and businesses want to hold for transactions purposes an amount of money equal to one-half of the GDP.The table shows the amounts of money that households and businesses want to hold as an asset at various interest rates.  Refer to the information above.If the GDP is $300 and the supply of money is $230, the equilibrium interest rate will be:
A)8 percent. 
B)6 percent. 
C)2 percent. 
D)4 percent.

It Is Assumed That Households and Businesses Want to Hold