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[MACROECONOMICS] - Determining Equilibrium Interest Rate?
4rch3nemy
Registered User regular
Registered User regular
I need to find the equilibrium interest rate given:
Interest Rate%: $Money Demand
12 : 140
11: 160
10: 180
9: 200
8: 240
7: 300
6: 360
5: 440
4: 540
Assume Money Supply = 200
NOW for the question:
Money Supply = 120 .. what is the Equilibrium Interest Rate?
Some thoughts:
Obviously: Money Demand = Money Supply in equilibrium.
I graphed that shit out up there .. didn't really help me out.
I'm sure there's a multiplier that I can find that will help me but I'm not sure how to find it.
I'm being dumb and I should know this. I'm sure there's an algabraeic way of finding this.
I need to hand this shit in in 20 minutes. lol
Thanks for any help.. even if I don't finish this question in time at least I'll have the knowledge for next time.
Interest Rate%: $Money Demand
12 : 140
11: 160
10: 180
9: 200
8: 240
7: 300
6: 360
5: 440
4: 540
Assume Money Supply = 200
NOW for the question:
Money Supply = 120 .. what is the Equilibrium Interest Rate?
Some thoughts:
Obviously: Money Demand = Money Supply in equilibrium.
I graphed that shit out up there .. didn't really help me out.
I'm sure there's a multiplier that I can find that will help me but I'm not sure how to find it.
I'm being dumb and I should know this. I'm sure there's an algabraeic way of finding this.
I need to hand this shit in in 20 minutes. lol
Thanks for any help.. even if I don't finish this question in time at least I'll have the knowledge for next time.
4rch3nemy on
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