Answer the Question on the Basis of the Following Table

question 26

Multiple Choice

Answer the question on the basis of the following table in which columns (1) and (2) indicate the transactions demand (D_t) for money and columns (1) and (3) show the asset demand (D_a) for money: $\begin{array}{c}\begin{array}{c}(1) \\\underline{\text {Interest Rate}}\\12 \% \\10 \\8 \\6 \\4 \\2\end{array}\begin{array}{c}(2) \\\underline{D_{t} }\\ \$ 100 \\100 \\100 \\100 \\100 \\100\end{array}\begin{array}{c}(3) \\\underline{D_{a}} \\\$ 0 \\20 \\40 \\60 \\80 \\100\end{array}\end{array}$
Refer to the given data.If the money supply is $160,the equilibrium interest rate will be:

• A) 10 percent.
• B) 8 percent.
• C) 6 percent.
• D) 4 percent.

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Definitions:

Basic

Referring to something fundamental, simple, or at the introductory level; often used to signify essential concepts or principles.

Neurons

Specialized cells of the nervous system that transmit information to other nerve cells, muscle, or gland cells, fundamental in the communication within the brain and body.

Electrically Charged

Having a property that causes it to attract or repel other electrically charged objects due to the presence of electric charges on its surface.

At Rest

A state in which one is not engaged in physical activity or exertion, often associated with the body’s normal functions at a basal metabolic rate.