Question: + empt.php?attempt=223711&cmid=107936 82000 6 E-mail : help@ritaj-ps ection 1 yet The following table describes money demand and supply at different levels of interest rate: vered

+ empt.php?attempt=223711&cmid=107936 82000 6 E-mail : help@ritaj-ps ection 1 yet The following table describes money demand and supply at different levels of interest rate: vered ced out of tion Interest rate Transaction demand Asset demand Dt Da Sm1 Sm2 Sm3 0% 900 1260 2100 2160 2040 1% 900 1200 2100 2160 2040 2% 900 1140 2100 2160 2040 3% 900 1080 2100 2160 2040 A. At money supply level of $ 2100, what is the equilibrium interest rate? % [Write the number without %] B. If the central bank decided to change the money supply to 2040, what will be the equilibrium interest rate? % [Write the number without %] C. Assume the monetary multiplier is 7. The central bank desires to decrease the money supply from 2100 to 2040, how much of government securities should the central bank sell? billion [Round your answer to the nearest two digits] D. At interest level 3% and money supply of $ 2100 billion, how much would be the surplus in the money market? TOSHIBA 8 A 9

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