Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 33 - Interest Rates and Monetary Policy - Quick Quiz for Figure 33.1 - Page 672: 1

Answer

d.) 100 billions dollars is demanded for transactions, 100 billion dollars is demanded as an asset, and the money supply is 200 billion dollars.

Work Step by Step

This is where equilibrium is reached so the total demand of money is equal to the total supply of money. In this situation, the total demand or Dm=Dt+Da so the 100+100=200 demanded=supplied.
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