Refer to the table above. Suppose that the transactions demand for money is equal to 20 percent of the nominal GDP, the supply of money is $800 billion, and the asset demand for money is that shown in the table. If the nominal GDP is $2000 billion, the equilibrium interest rate is:
A) 4 percent
B) 5 percent
C) 6 percent
D) 7 percent

Question

Refer to the table above. Suppose that the transactions demand for money is equal to 20 percent of the nominal GDP, the supply of money is $800 billion, and the asset demand for money is that shown in the table. If the nominal GDP is $2000 billion, the equilibrium interest rate is:
A) 4 percent 
B) 5 percent 
C) 6 percent 
D) 7 percent

Quizplus · Accepted Answer

The Answer of  Refer to the table above. Suppose that the transactions demand for money is equal to 20 percent of the nominal GDP, the supply of money is $800 billion, and the asset demand for money is that shown in the table. If the nominal GDP is $2000 billion, the equilibrium interest rate is:
A) 4 percent 
B) 5 percent 
C) 6 percent 
D) 7 percent

Refer to the Table Above