Refer to the Table Below

question 218

Multiple Choice

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.

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