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What is the equilibrium interest rate in moola

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Reference no: EM132080592

Refer to the table for Moola given below to answer the following questions.

Money Supply Money Demand Interest Rate Investment at Interest (Rate Shown) Potential Real GDP Actual Real GDP at Interest (Rate Shown)
$500 $800 2% $50 $350 $390
500 700 3 40 350 370
500 600 4 30 350 350
500 500 5 20 350 330
500 400 6 10 350 310

What is the equilibrium interest rate in Moola? %

What is the level of investment at the equilibrium interest rate? $

Is there either a recessionary output gap (negative GDP gap) or an inflationary output gap (positive GDP gap) at the equilibrium interest rate and, if either, what is the amount?

There is a of $ billion.

Given money demand, by how much would the Moola central bank need to change the money supply in order to close the output gap?

The money supply by $

What is the (expenditure) multiplier in Moola?

Reference no: EM132080592

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