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Interest Rates and the Opportunity Costs of Holding MoneyInterest Rate (%)Money Demand($ ...

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Interest Rates and the Opportunity Costs of Holding MoneyInterest Rate (%)Money Demand($ ...

Interest Rates and the Opportunity Costs of Holding Money

Interest Rate (%)	Money Demand ($ millions)	Money Supply ($ millions)
10	300	700
7	700	700
1	1200	700

According to the data in the table, if the interest rate is 10%, there is an excess ________.

▸ demand for money of $400 million

▸ supply of money of $400 million

▸ demand for money of $900 million

▸ supply of money of $900 million

Textbook

Macroeconomics

Edition: 3^rd

Authors: Acemoglu, Laibson, List

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