-Refer to the above table.Suppose the transactions demand for money is $300 billion and the money supply is $700 billion.A decrease in the money supply to $600 billion would cause the interest rate to:
A) rise to 7 percent.
B) rise to 6 percent.
C) fall to 4 percent.
D) fall to 5 percent.

Question

-Refer to the above table.Suppose the transactions demand for money is $300 billion and the money supply is $700 billion.A decrease in the money supply to $600 billion would cause the interest rate to:
A) rise to 7 percent. 
B) rise to 6 percent. 
C) fall to 4 percent. 
D) fall to 5 percent.

Quizplus · Accepted Answer

The Answer of 
-Refer to the above table.Suppose the transactions demand for money is $300 billion and the money supply is $700 billion.A decrease in the money supply to $600 billion would cause the interest rate to:
A) rise to 7 percent. 
B) rise to 6 percent. 
C) fall to 4 percent. 
D) fall to 5 percent.

-Refer to the Above Table