1,200 400 Money, M IS bilions) Figure 1: Money Market 21. Refer to Figure: 1 . A
ID: 1109574 • Letter: 1
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1,200 400 Money, M IS bilions) Figure 1: Money Market 21. Refer to Figure: 1 . At an interest rate of 5% there is an excess demand for money of $800 billion. there is so excess supply of money or demand for money. C there is an excess supply of money of $400 billion. D. there is an exoss demand for money of $400 billion and an exoess supply money of $800 billion of 22 Refer to Figure: I. There is an excess sapply of money of $400 billion at an interest 22. A rate of 23. 23. The expenditure approsch to GDP is shown by which of the ollowing equations? A GDP -C+I+G + EX + IMM .GDP C+I+G-EX-IM O, GDP = C + I + G + EX-IM 24. The transactiou demand for money depends on all of the following EXCEPT nominal aggregate output. B. real output and income. C. the interest rate. D. the aggregate price level 25. The value of what Burger King produces in France is included in the United States " A. GDP: GDP B. GNP: GDP OGDP: GNP D. GNP: GNP and in the French_ Midterm 2 Page 4 of 12Explanation / Answer
Answer 21:- The correct Answer is:- there is no excess supply of money or excess demand of money
Reason:- At 5% interest rates, the economy is having an equilibrium for money demand and supply.
Answer 22:- The correct Answer is:- A:- 8%
Reason:- At 8% interest rates, demand =400 and supply=800 thus there is an excess if money= 800-400=400 at 8% interest rate.
Answer 23:- The correct Answer is:- GDP=C+I+G+EX-IM
Answer 24:- The correct Answer is:- the interest rate
Answer 25:- The correct Answer is:- GNP;GDP
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