-Refer to the table below. If the transactions demand for money is $400 billion, an increase in the money supply from $800 billion to $900 billion would cause the equilibrium interest rate to:
A) rise to 7 percent.
B) rise to 6 percent.
C) fall to 4 percent.
D) remain at 5 percent.

Question

-Refer to the table below. If the transactions demand for money is $400 billion, an increase in the money supply from $800 billion to $900 billion would cause the equilibrium interest rate to: 
A) rise to 7 percent. 
B) rise to 6 percent. 
C) fall to 4 percent. 
D) remain at 5 percent.

Quizplus · Accepted Answer

The Answer of 
-Refer to the table below. If the transactions demand for money is $400 billion, an increase in the money supply from $800 billion to $900 billion would cause the equilibrium interest rate to: 
A) rise to 7 percent. 
B) rise to 6 percent. 
C) fall to 4 percent. 
D) remain at 5 percent.

-Refer to the Table Below