Use the table below to answer the questions:
(a) If the transactions demand for money equals 10% of nominal GDP, nominal GDP is $800 billion, and the money supply is $480 billion, what is the equilibrium interest rate?
(b) If nominal GDP remains constant, and the money supply is decreased from $480 to $380 billion, what will the equilibrium rate of interest be?
Definitions:
Nursing Professor
An academic or clinical educator specializing in the field of nursing, responsible for teaching and guiding future nurses.
Eye Contact
The act of looking directly into someone else's eyes, often used as a means of communication or to express attention.
Nursing Student
An individual engaged in an educational program focused on learning the skills and knowledge required for the nursing profession.
Restless Sleep
A sleep disorder characterized by difficulty in staying asleep or experiencing restful sleep, often leading to daytime fatigue and other health issues.
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