Characterize the hypothetical economy of trance

Reference no: EM13686052

Suppose that the following data characterize the hypothetical economy of Trance: money supply = $200 billion; quantity of money demanded for transactions = $160 billion; quantity of money demanded as an asset = $10 billion at 12 percent interest, increasing by $10 billion for each 2-percentage-point fall in the interest rate.

A. Quantity of money demanded = $ billion

B. Amount of money demanded for transactions = $ billion

C. Amount of money demanded as an asset = $ billion

Reference no: EM13686052

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