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Based on the Given Table, an Increase in the Money

Question 284

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 Interest Rate  Transactions Demand for  Money  Asset Demand for Money  Money Supply 2%$220$300446042202804606220260460822024046010220220460\begin{array} { | c | c | c | c | } \hline \text { Interest Rate } & \begin{array} { c } \text { Transactions Demand for } \\\text { Money }\end{array} & \text { Asset Demand for Money } & \text { Money Supply } \\\hline 2 \% & \$ 220 & \$ 300 & 4460 \\\hline 4 & 220 & 280 & 460 \\\hline 6 & 220 & 260 & 460 \\\hline 8 & 220 & 240 & 460 \\\hline 10 & 220 & 220 & 460 \\\hline\end{array} Based on the given table, an increase in the money supply of $20 billion will cause the equilibrium interest rate to


A) fall by 4 percentage points.
B) fall by 2 percentage points.
C) rise by 4 percentage points.
D) rise by 2 percentage points.

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