Answer the Question on the Basis of the Following Table

question 53

Multiple Choice

Answer the question on the basis of the following table: $\begin{array}{c}\begin{array}{c}\\\text { Interest }\\\text { Rate } \\\hline 2 \% \\4 \\6 \\8 \\10 \end{array}\begin{array}{c}\text {Transaction}\\\text {Demand for}\\\underline{\text {Money}}\\ \$ 220 \\220\\220\\220\\220\end{array}\begin{array}{c}\\\text {Asset Demand }\\\underline{\text {for Money}}\\\$ 300 \\280 \\260 \\240 \\220\end{array}\begin{array}{c}\\\text {Money}\\\underline{\text {Supply}}\\\$ 460 \\460\\460\\460\\460\end{array}\end{array}$

Refer to the given table.The equilibrium interest rate is:

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

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Definitions:

Sample Sizes

The number of observations or items selected from a population to constitute a sample.

Confidence Interval

A confidence interval is a range of values, derived from the sample data, that is believed to contain the true population parameter with a certain level of confidence.

Sample Sizes

The number of observations or data points from the population used to make estimations about the population.

Critical Value Z

A threshold value on the standard normal distribution used in hypothesis testing to decide whether to reject the null hypothesis.