Interest Rates and the Opportunity Costs of Holding Money
Interest Rate (%) | Money Demand ($ millions) | Money Supply ($ millions) |
12 | 500 | 900 |
6 | 900 | 900 |
3 | 1300 | 900 |
According to the data in the table, if the interest rate is 3% there is an excess ________.
◦ demand for money of $800 million
◦ supply of money of $400 million
◦ supply of money of $800 million
◦ demand for money of $400 million