The Following Data Is for the Economy of Basila

question 77

Short Answer

The following data is for the economy of Basila:
Suppose the money supply in Basila is $120.
a)What is the equilibrium rate of interest and investment spending?
b)If the interest rate is 9 percent is there a surplus or shortage of money? How much?
c)By how much does investment change for each $20 increase in the money supply?

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