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The Demand for Capital Is QD = 46 - 10r

Question 47

Multiple Choice

The demand for capital is QD = 46 - 10r and the supply of capital is QS = 2r - 2, where r is the interest rate (measured as a percentage) and Q measures the quantity of capital in millions of dollars. The equilibrium interest rate is r = ____.


A) 4.6
B) 1
C) 4
D) 5.5

Correct Answer:

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