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.

FOORQUIZ ANSWER:

C.  $160.