Refer to the table. 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
B. 5 percent
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Because the applications for "diversity immigration" into the U.S. far exceed the quota every year, the slots are filled through:
A. An annual lottery B. A first-come-first-served system C. A bidding system, allocation through prices D. Political connections
If there is an exogenous increase in investment spending, Monetarists argue that there would be little or no effect on real output because the interest rate would __________,
investment would __________, saving would __________, and consumption would __________. A) decline; increase; increase; decrease B) decline; increase; decrease; increase C) rise; decrease; decrease; increase D) rise; decrease; increase; decrease
Restrictive covenants place constraints on the behavior of ________
A) borrowers B) lenders C) the central bank D) the executive branch of the federal government
Kuznets's research showed that the marginal propensity to consume remains constant as national income rises
Indicate whether the statement is true or false