Suppose that the demand for real money balances is (M / P)d = 5Y − 20r. If the supply of real balances is 400, and the gross domestic product is 100, then the equilibrium interest rate is:2.5.5.7.5.10.

Suppose that the demand for real money balances is (M / P)d = 5Y − 20r. If the point (Y = 100, r = 5) is on the LM curve, and Y = 110, then the value of r that produces money market equilibrium is:2.5.5.7.5.10.

Country A is a closed economy. The consumption C=150+0.5(Y-T), Government expenditure is 300, Tax is 200, I=180-1200r, (M/P)d=Y-1000r, M=1200, P=2. What is the real interest rate(r) when it is equilibrium level?A.0.2B.0.12C.0.165D.0.178

Suppose the private sector only hold currency (i.e. there are no banks). The demand for money is given by Money demand = $Y(0.4 - i)The nominal income is $100 and the supply of money is held fixed at 25. Starting from the initial equilibrium suppose nominal income increases to $125. The increase in income will ________ the demand for money and the new equilibrium interest rate will be ________ .Group of answer choicesincrease; 0.15increase; 0.2decrease; 0.1decrease; 0.05

Consider a closed economy with the following equations and values:Y=C+I+GY=6,000G=2,000T=2,000C=300+0.5(Y-T)I=2,000-6,000rWhat is the equilibrium real interest rate(r)?

The equilibrium interest rate is determinedmultiple choiceto fluctuate over time.at the intersection of the total demand for money curve and the supply of money curve.at the intersection of the aggregate demand and aggregate supply curve.by the Fed