Use the information in the following table to answer the next question.Money SupplyMoney DemandInterest RateInvestment (at interest rate shown)$400$6002%$7004005003600400400450040030053004002006200The equilibrium interest rate in this economy is ________.
A. 3%
B. 4%
C. 5%
D. 6%
Answer: B
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A credible promise is:
A. in the promiser's interest to keep. B. possible to keep. C. legally enforceable. D. made by a honest person.
If inflation is higher than expected, then lenders receive interest payments whose real values are less than they expected
a. True b. False Indicate whether the statement is true or false
Suppose the government imposes a 30-cent tax on the sellers of soft drinks. Which of the following is not correct? The tax would
a. shift the supply curve upward by 30 cents. b. raise the equilibrium price by 30 cents. c. reduce the equilibrium quantity. d. discourage market activity.
Which of the following is false?
A. The monopolist and perfect competitor both produce where MC equals MR. B. A monopoly is a firm that produces all the output in an industry. C. If a monopolist is losing money, it is in the long run. D. Price is read off the demand curve for the monopolist.