Assume the demand for real money balances is given by Ma/P = Y/6 - 150i. price level =100 a) Find the equilibrium interest rate if the money supply is $1,700 and output equals 129. b) Find the new equilibrium interest rate if the money supply is $1,700 and output increases to 138.

Assume the demand for real money balances is given by Ma/P = Y/6 - 150i. price level =100 a) Find the equilibrium interest rate if the money supply is $1,700 and output equals 129. b) Find the new equilibrium interest rate if the money supply is $1,700 and output increases to 138.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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