Money demand function, Macroeconomics

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Assume that the money demand function is (M/P) d = 2,200 - 200r, where r is the interest rate in percent. The money supply M is 2,000 and the price level P is2. If the price level is fixed and the Fed wants to fix the interest rate at 7 percent, it should set the money supply at:

A) 2,000.

B) 1,800.

C) 1,600.

D) 1,400.


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