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Money demand in an economy in which no interest is paid on money is: where Y is real income and i is the nominal interes
Posted: Fri Jul 01, 2022 7:54 am
by answerhappygod
- Money Demand In An Economy In Which No Interest Is Paid On Money Is Where Y Is Real Income And I Is The Nominal Interes 1 (112.28 KiB) Viewed 39 times
Money demand in an economy in which no interest is paid on money is: where Y is real income and i is the nominal interest rate. a. Suppose that P = 200, Y=750, and i = 0.08. Calculate the following: Md P = 500+ 0.2 Y - 1000 i, Real money demand: Nominal money demand: Velocity: (use whole numbers for the answers to both money demand
questions but use two decimal places for the answer about velocity) b. The price level doubles from P = 200 to P = 400. Recalculate the values for these three variables: Real money demand: Nominal money demand: Velocity: (use whole numbers for the answers to both money demand
questions but use two decimal places for the answer about velocity)