Answer the question based on 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. If nominal GDP is $300 and the supply of money is $210, the equilibrium interest rate will be Interest Rate Amount of Money Demanded as an Asset 10% $20 8 40 6 60 4 80 2 100 Multiple Choice 4 percent. 6 percent. 10 percent. 2 percent. 8 percent
Answer the question based on 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. If nominal GDP is $300 and the supply of money is $210, the equilibrium interest rate will be Interest Rate Amount of Money Demanded as an Asset 10% $20 8 40 6 60 4 80 2 100 Multiple Choice 4 percent. 6 percent. 10 percent. 2 percent. 8 percent
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Answer the question based on 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.
If nominal GDP is $300 and the supply of money is $210, the equilibrium interest rate will be
| Interest Rate | Amount of Money Demanded as an Asset |
| 10% | $20 |
| 8 | 40 |
| 6 | 60 |
| 4 | 80 |
| 2 | 100 |
Multiple Choice
-
4 percent.
-
6 percent.
-
10 percent.
-
2 percent.
-
8 percent
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