The above table has the demand and supply schedules for money. ...

[yoooooman]

The above table has the demand and supply schedules for money. Real GDP increases and, as a result, the demand for money increases by 0.1 trillion at each level of the nominal interest rate. The new equilibrium interest rate is
 
  A) 5 percent. B) 2 percent. C) 10 percent. D) 3 percent. E) 7 percent.

Question 2

The Fed directly controls long-term interest rates.
 
  Indicate whether the statement is true or false

[jointhecircus]

Answer to Question 1

C

Answer to Question 2

FALSE