Question: Use the table below to answer the questions. (2.5Points) Interest Asset rate demand (in %) (billions) 14 $200 13 300 12 400 11 500 (a)

 Use the table below to answer the questions. (2.5Points) Interest Asset

Use the table below to answer the questions. (2.5Points) Interest Asset rate demand (in %) (billions) 14 $200 13 300 12 400 11 500 (a) If the transactions demand for money equals 10% of nominal GDP, the nominal GDP is $6000 billion, and the supply of money is $900 billion, what is the equilibrium interest rate? (b) If nominal GDP remains constant, and the money supply is increased from $900 to $1000 billion, what will the equilibrium rate of interest be

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