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Refer to the Table Below

Question 149

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: 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.


A) rise to 7 percent.
B) rise to 6 percent.
C) fall to 4 percent.
D) remain at 5 percent.

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