Business, 29.11.2019 00:31 ajayrose

Assume that the following data characterize the hypothetical economy of trance: money supply = $190 billion; quantity of money demanded for transactions = $140 billion; quantity of money demanded as an asset = $10 billion at 12 percent interest, increasing by $10 billion for each 2-percentage-point fall in the interest rate.
a. what is the equilibrium interest rate in trance?

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Assume that the following data characterize the hypothetical economy of trance: money supply = $190...