It Is Assumed That Households and Businesses Want to Hold

question 6

Multiple Choice

It is assumed that households and businesses want to hold for transactions purposes an amount of money equal to one-half of the GDP.The table shows the amounts of money that households and businesses want to hold as an asset at various interest rates.
Refer to the information above.If the GDP is $200 and the interest rate is 6,what total amount of money will households and businesses want to hold?

• A) $120
• B) $140
• C) $160
• D) $180

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