For the next 5 questions, assume that the economy starts in equilibrium: -the output is 1 million -the equilibrium price of a one-year, $100 bond is $96 -the money supply is 1 trillion -the price level is 125 What is the interest rate in this economy? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a 4.67% 4.00% 5.03% d. 4.17%

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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For the next 5 questions, assume that the economy starts in equilibrium:
-the output is 1 million
-the equilibrium price of a one-year, $100 bond is $96
-the money supply is 1 trillion
-the price level is 125
What is the interest rate in this economy?
Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.
a
4.67%
b
4.00%
5.03%
d.
4.17%
Transcribed Image Text:For the next 5 questions, assume that the economy starts in equilibrium: -the output is 1 million -the equilibrium price of a one-year, $100 bond is $96 -the money supply is 1 trillion -the price level is 125 What is the interest rate in this economy? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a 4.67% b 4.00% 5.03% d. 4.17%
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