meucation.comim.tpx Question 5 (or 5 2000 points Assume that the as an asset- $1

Question

meucation.comim.tpx Question 5 (or 5 2000 points Assume that the as an asset- $10 biion at 12 percent interest, increasing by $10 billion for each 2-percentage-poiet talil in the interest rate Instructions: Enter your answers as whole numbers a What is the equibrium interest rate in Trance? lolo ng data characterize the hypothetical economy of Trance money supply-$180 baon quantity of money demanded for transact ns " $160 bln quatty of money demanded percent b. the eqnt nu n interest rate ratare the quantey of money supple·the total demanded as an asset in Trance? atty of money and d, the amount of money dmarded nor tansact ns. and the amount of money Quantity of money supplied- Quantity of money demanded-$( bin Amount of money demanded for transactions Amount of money demanded as an asset- bilion bilion baon Reterences

Explanation / Answer

Answer:

(a) What is the equilibrium interest rate in Trance?

         10 %

(b)    Quantity of money supplied = $180

         Quantity of money demanded = $180

         Amount of money demanded for transactions = $160

         Amount of money demanded as an asset = $20

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