Refer to the graph. If the supply of money was $200 billion, the interest rate would be:
A. 1 percent
B. 2 percent
C. 3 percent
D. 4 percent
B. 2 percent
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Which of the following is a free rider?
a. Butch breeds the feared pit bulls, and his neighbors now erect fences around their property. b. Fred watches many public television programs, but he has never sent in a contribution. c. Barry steals candy from the store where he works. d. Betty regularly uses the local public library. e. Joe drives 20,000 miles a year on public streets, but he pays no more in taxes than Sam, who only drives 1,000 miles.
Which of the following statements is TRUE?
A. The long-run aggregate supply curve is vertical. B. The long-run aggregate demand curve is upward sloping. C. The long-run aggregate supply curve is upward sloping. D. The short-run aggregate supply curve is vertical.