assuming that the money demand in a closed economy is L= 280+0.5Y-800R where Y is the income level (=600. monetary units
Posted: Thu May 19, 2022 9:06 am
assuming that the money demand in a closed economy is L= 280+0.5Y-800R where Y is the income level (=600. monetary units) and R is the interest rate (4%). the money supply is 610 monetary units. assuming income increases at750 units while R remains for a short period stable at 4%.define short term the level of L-M before money market balance is achieved. Solve and show me the solution and choose one of the following: a. L-M =-62 b. L-M =62 c. L-M =-13 d. L-M =13