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B 18 16 10 Rate of interest (%) 80 100 120 140 160 180 200 220 240 260 280 Quantity of investment a. If money

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B 18 16 10 Rate of interest (%) 80 100 120 140 160 180 200 220 240 260 280 Quantity of investment a. If money supply is equal to 110, what are the values of equilibrium Interest rate and Investment spending? Interest rate: [ 1 95 Investment: $ b. If money supply is equal to 140, what are the values of equilibrium Interest rate and Investment spending? Interest rate: [ Investment: $ C. If money supply is equal to 130, and money demand increases by 40, draw In the money supply and new money demand curve in graph A. Plot only the endpoints of MS and MD2 In graph A and position those points on the edges of the graphing area. d. What are the values of equilibrium Interest rate and Investment spending? Interest rate: Investment: $0

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