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Consider the Following Table -The Equilibrium Interest Rate Is:
A)2 Percent
B)4 Percent
C)6

Question 29

Multiple Choice

Consider the following table:

 Interest  rate % Transaction demand  for money  Asset demand for  money  Money  supply 2$220$300$46042202804606220260460822024046010220220460\begin{array} { | c | c | c | c | } \hline \begin{array} { c } \text { Interest } \\\text { rate } \%\end{array} & \begin{array} { c } \text { Transaction demand } \\\text { for money }\end{array} & \begin{array} { c } \text { Asset demand for } \\\text { money }\end{array} & \begin{array} { c } \text { Money } \\\text { supply }\end{array} \\\hline 2 & \$ 220 & \$ 300 & \$ 460 \\\hline 4 & 220 & 280 & 460 \\\hline 6 & 220 & 260 & 460 \\\hline 8 & 220 & 240 & 460 \\\hline 10 & 220 & 220 & 460 \\\hline\end{array}
-The equilibrium interest rate is:


A) 2 percent
B) 4 percent
C) 6 percent
D) 8 percent
E) 10 percent

Correct Answer:

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