The U.S. economy is unique for both its size and prosperity

Refer to the figure above. What is the equilibrium rate of interest when the credit demand curve is CD1 and the credit supply curve is CS1?

A) 2% B) 3% C) 5% D) 4%

Some have argued that the Federal Reserve looked at the wrong indicator of monetary policy, and that the Fed mistakenly thought that monetary policy was "easy" because ______

a. the stock of money had grown rapidly b. the monetary base had grown rapidly c. market interest rates were low d. bank reserve ratios were low