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Answer the Question on the Basis of the Following Table

Question 23

Multiple Choice

Answer the question on the basis of the following table:  Interest  Rate 2%46810TransactionDemand forMoney$220220220220220Asset Demand for Money$300280260240220MoneySupply$460460460460460\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}

Refer to the given table.The equilibrium interest rate is:


A) 2 percent.
B) 4 percent.
C) 6 percent.
D) 8 percent.

Correct Answer:

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