Multiple Choice
Refer to the table below.If the transactions demand for money is $400 billion, an increase in the money supply from $800 billion to $900 billion would cause the equilibrium interest rate to:
A) rise to 7 percent.
B) rise to 6 percent.
C) fall to 4 percent.
D) remain at 5 percent.
Correct Answer:

Verified
Correct Answer:
Verified
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