Refer to the table for Moola given below to answer the following questions.
| Money Supply |
Money Demand |
Interest Rate |
Investment at Interest (Rate Shown) |
Potential Real GDP |
Actual Real GDP at Interest (Rate Shown) |
| $500 |
$800 |
2% |
$50 |
$350 |
$390 |
| 500 |
700 |
3 |
40 |
350 |
370 |
| 500 |
600 |
4 |
30 |
350 |
350 |
| 500 |
500 |
5 |
20 |
350 |
330 |
| 500 |
400 |
6 |
10 |
350 |
310 |
What is the equilibrium interest rate in Moola? %
What is the level of investment at the equilibrium interest rate? $
Is there either a recessionary output gap (negative GDP gap) or an inflationary output gap (positive GDP gap) at the equilibrium interest rate and, if either, what is the amount?
There is a of $ billion.
Given money demand, by how much would the Moola central bank need to change the money supply in order to close the output gap?
The money supply by $
What is the (expenditure) multiplier in Moola?