Assume that the following data characterize the hypothetical economy of Trance: money supply = $180 billion; quantity of

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Assume that the following data characterize the hypothetical
economy of Trance: money supply = $180 billion; quantity of money
demanded for transactions = $150 billion; quantity of money
demanded as an asset = $10 billion at 12 percent interest,
increasing by $10 billion for each 2-percentage-point fall in the
interest rate.
Instructions: Enter your answers as a
whole number.
a. What is the equilibrium interest rate in Trance?
b. At the equilibrium interest rate, what are the quantity of
money supplied, the quantity of money demanded, the amount of money
demanded for transactions, and the amount of money demanded as an
asset in Trance?
Quantity of money supplied =
$
Quantity of money demanded =
$
Amount of money demanded for
transactions = $
Amount of money demanded as an asset =
$