Business, 06.12.2019 21:31 jabper5522
Assume that the following data characterize the hypothetical economy of trance: money supply = $200 billion; the quantity of money demanded transactions = $150 billion; the quantity of money demanded as an asset = $10 billion at 12 percent interest, increasing by $10 billion for each 2-percentage-point fall in the interest rate.
a. what is the equilibrium interest rate in trance?
b. at the equilibrium interest rate, what is the quantity of money supplied, the money demanded, the amount of money demanded transaction, and the amount of money demanded as an asset in the trace?
Answers: 1
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Assume that the following data characterize the hypothetical economy of trance: money supply = $200...
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