Refer to the given information. If nominal GDP is $200 and the interest rate is 6 percent, the total amount of money that households and businesses will want to hold is:

Answer the question on the basis of the following information. For transactions, households
and businesses want to hold an amount of money equal to one-half of nominal GDP. The table
shows the amounts of money they want to hold as an asset at various interest rates.

A. $120.
B. $140.
C. $160.
D. $180.

ANSWER:

C. $160.