Question: pts Assume that the money demand function is (M / p)d = 2,200 - 200r, where r is the interest rate in percent. The money

pts Assume that the money demand function is (M / p)d

pts Assume that the money demand function is (M / p)d = 2,200 - 200r, where r is the interest rate in percent. The money supply M is 2,800, and the price level P is 2. If the price level is fixed and the supply of money is raised to 3,200, then the equilibrium interest rate will: O drop by 7.5 percent. O drop by 1 percent. drop by 7 percent. drop by 0.5 percent. Share

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