Answer the Question on the Basis of the Following Information

question 87

Multiple Choice

Answer the question on the basis of the following information.For transactions,households and businesses want to hold an amount of money equal to one-half of nominal GDP.The table shows the amounts of money they want to hold as an asset at various interest rates. $\begin{array}{l}\begin{array}{cc}\underline{\text { Interest Rate} } & \underline{\text { Amount of Money Demanded }}\\10 \% & \$ 20 \\8 & 40 \\6 & 60 \\4 & 80 \\2 & 100\end{array}\end{array}$ Refer to the given information.If nominal GDP is $300 and the supply of money is $230,the equilibrium interest rate will be:

• A) 8 percent.
• B) 6 percent.
• C) 4 percent.
• D) 2 percent.

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Definitions:

Brym and Lie

Refers to sociologists John Brym and Steven Lie, known for their contributions to understanding social structures and dynamics.

Primary Labor Market

A segment of the labor market characterized by high wages, job security, good working conditions, and opportunities for advancement, typically requiring higher education and skills.

Oligopoly

A market structure in which a few companies dominate the industry, often leading to limited competition.