Answer the question on the basis of the following table: $\begin{array}{c}
\begin{array}{c}
\
\text { Interest }\
\text { Rate } \
\hline 2 \% \
4 \
6 \
8 \
10
\end{array}
\begin{array}{c}
\text {Transaction}\
\text {Demand for}\
\underline{\text {Money}}\
\$ 220 \
220\
220\
220\
220
\end{array}
\begin{array}{c}
\
\text {Asset Demand }\
\underline{\text {for Money}}\
\$ 300 \
280 \
260 \
240 \
220
\end{array}
\begin{array}{c}
\
\text {Money}\
\underline{\text {Supply}}\
\$ 460 \
460\
460\
460\
460
\end{array}
\end{array}$
At equilibrium in the given market for money,the total amount of money demanded is:
A) $500.
B) $480.
C) $460.
D) $440.

Question

Answer the question on the basis of the following table: $\begin{array}{c}
\begin{array}{c}
\
\text { Interest }\
\text { Rate } \
\hline 2 \% \
4 \
6 \
8 \
10 
\end{array}
\begin{array}{c}
\text {Transaction}\
\text {Demand for}\
\underline{\text {Money}}\
 \$ 220 \
220\
220\
220\
220
\end{array}
\begin{array}{c}
\
\text {Asset Demand }\
\underline{\text {for Money}}\
\$ 300 \
280 \
260 \
240 \
220
\end{array}
\begin{array}{c}
\
\text {Money}\
\underline{\text {Supply}}\
\$ 460 \
460\
460\
460\
460
\end{array}
\end{array}$
 At equilibrium in the given market for money,the total amount of money demanded is:
A) $500.
B) $480.
C) $460.
D) $440.

Quizplus · Accepted Answer

At equilibrium, the quantity of money demanded is equal to the quantity of money supplied. From the given table, we can see that at $40, the quantity of money demanded is 12 while at $20, the quantity of money demanded is 23. So, for the equilibrium quantity demanded, the price would be between $40 and $20, which is $30. At this price, the quantity of money demanded is 15. Hence, the total amount of money demanded is $30 x 15 = $460.

Answer the Question on the Basis of the Following Table