Question: can you answer the question fast 2 The following table describes money demand and supply at different levels of interest rate: Interest rate Transaction demand
can you answer the question fast


2 The following table describes money demand and supply at different levels of interest rate: Interest rate Transaction demand Asset demand Dt Da Sm1 Sm2 Sm3 0% 900 1580 2400 2480 2320 1% 900 1500 2400 2480 2320 2% 900 1420 2400 2480 2320 3% 900 1340 2400 2480 2320A. At money supply level of $ 2400, what is the equilibrium interest rate? % [Write the number without %] B. if the central bank decided to change the money supply to 2320, what will be the equilibrium interest rate? 5% [Write the number without %] C. Assume the monetary multiplier is 5. The central bank desires to decrease the money supply from 2400 to 2320, how much of government securities should the central bank sell? $ billion [Round your answer to the nearest two digits]
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