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S Refer to the table for Moola below to answer the following questions. Money Supply Money Demand 700 600 500 percent $ Interest Rate 4%
S Refer to the table for Moola below to answer the following questions. Money Supply Money Demand 700 600 500 percent $ Interest Rate 4% IN LO of $ 5 Instructions: Enter your answers as a whole number. a. What is the equilibrium interest rate in Moola? 6 7 8 Investment at Interest (Rate Shown) $80 60 50 b. What is the level of investment at the equilibrium interest rate? 40 Potential Real Acto GDP $ 350 350 350 350 35.0 c. Is there either a recessionary output gap (negative GDP gap) or an inflationary output gap (positive GDP gap) at the equilibrium interest rate and, if either, what is the amount? (Click to select) d. Given money demand, by how much would the Moola central bank need to change the money supply to close the output gap? (Click to select) the money supply by $ e. What is the expenditure multiplier in Moola?
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