Consider the Following Table -If the Money Supply Is $160,the Equilibrium Interest Rate Will

question 26

Multiple Choice

Consider the following table

$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Interest rate } \\( \% ) \end{array} & \begin{array} { c } \text { Transaction demand } \\\text { for money }\end{array} & \begin{array} { c } \text { Asset demand } \\\text { for money }\end{array} \\\hline 12 & \$ 100 & \$ 0 \\\hline 10 & 100 & 20 \\\hline 8 & 100 & 40 \\\hline 6 & 100 & 60 \\\hline 4 & 100 & 80 \\\hline 2 & 100 & 100 \\\hline\end{array}$
-If the money supply is $160,the equilibrium interest rate will be:

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

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