If M^d = 1,000 - 400r and M^s = 2,000,the MPC = .85,G=100,and T = 120,then the equilibrium interest rate is

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The equilibrium interest rate is the rate at which the quantity of money demanded equals the quantity of money supplied. In this case, the quantity of money demanded is given by M^d = 1,000 - 400r, and the quantity of money supplied is given by M^s = 2,000. Setting these two equations equal to each other, we get:1,000 - 400r = 2,000-400r = 1,000r = 2.5Therefore, the equilibrium interest rate is 2.5%.

If Md = 1,000 - 400r and Ms = 2,000,the

If M^d = 1,000 - 400r and M^s = 2,000,the