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assume that the following data characterize the hypothetical economy of Trance: Money supply=$180 billion; quantity of money demanded for transactions=$160 billion; Quantity of money demanded
assume that the following data characterize the hypothetical economy of Trance: Money supply=$180 billion; quantity of money demanded for transactions=$160 billion; Quantity of money demanded as an asset=$10 billion at 12% interest rate, increasing by $10 billion for each 2-percentage-point-fall in the interest rate. What is the equilibrium interest rate?
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