The Table Below Shows the Amounts of Money That Households

question 10

Multiple Choice

The table below shows the amounts of money that households and businesses want to hold at various interest rates.

$\begin{array} { | c | c | } \hline \begin{array} { c } \text { Interest Rate } \\( \% ) \end{array} & \begin{array} { c } \text { Quantity of money demanded } \\\text { (\$ billions) }\end{array} \\\hline 10 & 20 \\\hline 8 & 40 \\\hline 6 & 60 \\\hline 4 & 80 \\\hline 2 & 100 \\\hline\end{array}$
-If the supply of money is $80 billion,the equilibrium interest rate will be:

• A)10 percent
• B)8 percent
• C)6 percent
• D)4 percent
• E)2 percent

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