Refer to the table and answer the following questions :

1. Complete the table ?

2. If the period covered by table above is one year, the interest rate paid on bonds is …………….

3. The optimal average money holdings is ………………………….

4. The cost per switch for this economy is …………………………………

5. If it costs $9 each time a bond is sold, and the interest rate increases to 40% the optimal number of switches is-----------------.

 

Number of switches 0 2 3 Average Money Holdings 2500 1300 600 Average bond Holdings 0 1000 1600 Interest Cost of earned switches 0 300 12