$\begin{array} { c c c }
\hline &\text { Quantity of }&\text { Quantity of }\
\text { Nominal interest rate }&\text { money demanded }&\text { money supplied }\
\text { (percent per year) }&\text { (trillions of dollars) }&\text { (trillions of dollars) }\
\hline 5 & 2.9 & 2.5 \
6 & 2.8 & 2.5 \
7 & 2.7 & 2.5 \
8 & 2.6 & 2.5 \
9 & 2.5 & 2.5 \
10 & 2.4 & 2.5 \
\hline
\end{array}$
The above table has the demand and supply schedules for money.
- What is the equilibrium nominal interest rate?
A)6 percent
B)8 percent
C)7 percent
D)5 percent
E)9 percent

Question

$\begin{array} { c c c } 
\hline &\text { Quantity of }&\text { Quantity of }\
\text { Nominal interest rate }&\text { money demanded }&\text { money supplied }\
\text { (percent per year) }&\text { (trillions of dollars) }&\text { (trillions of dollars) }\
\hline 5 & 2.9 & 2.5 \
6 & 2.8 & 2.5 \
7 & 2.7 & 2.5 \
8 & 2.6 & 2.5 \
9 & 2.5 & 2.5 \
10 & 2.4 & 2.5 \
\hline
\end{array}$
The above table has the demand and supply schedules for money.
- What is the equilibrium nominal interest rate?
A)6 percent
B)8 percent
C)7 percent
D)5 percent
E)9 percent

Quizplus · Accepted Answer

The equilibrium nominal interest rate is where the quantity of money demanded equals the quantity of money supplied, which occurs at 9 percent with both being 2.5 trillion dollars.

The Above Table Has the Demand and Supply Schedules for of }&\text