Answer the question on the basis of the following table in which columns (1) and (2) indicate the transactions demand (Dt) for money and columns (1) and (3) show the asset demand (Da) for money:
Refer to the given data.If the money supply is $160,the equilibrium interest rate will be:
A) 10 percent.
B) 8 percent.
C) 6 percent.
D) 4 percent.
Correct Answer:
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