Question
Suppose new regulation increases the demand for money holding all else equal( i.e., the willingness to supply funds will not change). Given the following information
Suppose new regulation increases the demand for money holding all else equal( i.e., the willingness to supply funds will not change). Given the following information what is the difference between the the pre- and post equilibrium interest rates. Enter your answer as a percent without the %. Round your final answer to two decimals.
| Pre-regulation | Post-regulation | |||||
|---|---|---|---|---|---|---|
| Amount of funds | Suppliers | Demanders | Demanders | |||
| Supplied or | required | required | required | |||
| Demanded | interest rate | interest rate | interest rates | |||
| 1 | 1.00% | 7.00% | 9.00% | |||
| 10 | 2.00% | 6.00% | 8.00% | |||
| 15 | 3.00% | 5.00% | 7.00% | |||
| 30 | 4.00% | 4.00% | 6.00% | |||
| 60 | 5.00% | 3.00% | 5.00% | |||
| 120 | 6.00% | 2.00% | 4.00% |
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Financial Management For Public Health And Not For Profit Organizations
Authors: Steven A. Finkler
1st Edition
0130176141, 9780130176141
