If M^d = 1,000 - 400r and M^s = 2,000,the

Multiple Choice

If M^d = 1,000 - 400r and M^s = 2,000,the MPC = .85,G=100,and T = 120,then the equilibrium interest rate is

A) 2.5
B) 5
C) 10
D) 20
E) not enough information was given.