-The Above Table Has the Demand and Supply Schedules for
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$$\begin{array} { c c c } \begin{array} { c } \text { Nominal interest rate } \\\text { (percent per year) }\end{array} & \begin{array} { c } \text { Quantity of } \\\text { (trillions of demanded }\end{array} & \begin{array} { c } \text { Quantity of } \\\text { money supplied } \\\text { (trillions of dollars) }\end{array} \\\hline 5 & 2.9 & 2.5 \\6 & 2.8 & 2.5 \\7 & 2.7 & 2.5 \\8 & 2.6 & 2.5 \\9 & 2.5 & 2.5 \\10 & 2.4 & 2.5\end{array}$$
-The above table has the demand and supply schedules for money.If the Fed increases the quantity of money by $0.1 trillion, the new equilibrium nominal interest rate is

A) 8 percent.
B) 9 percent.
C) 7 percent.
D) 5 percent.
E) 6 percent.

Correct Answer:

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