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. Amount of funds Supplied or Demanded 1 10 15 30 60 120 Suppliers' required interest rate 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% Pre-regulation Demanders' required interest rate 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% Post- regulation Demanders' required interest rates 9.00% 8.00% 7.00% 6.00% 5.00% 4.00%

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. Amount of funds Supplied or Demanded 1 10 15 30 60 120 Suppliers' required interest rate 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% Pre-regulation Demanders' required interest rate 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% Post- regulation Demanders' required interest rates 9.00% 8.00% 7.00% 6.00% 5.00% 4.00%

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter14: The Financial Crisis And The Great Recessio

Section: Chapter Questions

Problem 1TY

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