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.

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 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

The intersection of the IS and LM curves determines the equilibrium:money supply and national income.inflation and interest rate.national income and interest rate.national income and inflation.

In a market the demand curve is given by P = 100 –2q and supply by P =2q. What are the equilibrium price and quantity traded? Group of answer choicesP* = 25, q* = 25P* = 100, q* = 50P* = 50, q* = 50P* = 50, q* = 25None of the above.

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