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Suppose that a person's yearly income is $60,000. Also sup- pose that this person's money demand function is given by Md = $Y (.35 - i )
a. What is this person's demand for money when the interest rate is 5%? 10%?
b. Explain how the interest rate affects money demand.
c. Suppose that the interest rate is 10%. In percentage terms, what happens to this person's demand for money if her yearly income is reduced by 50%?
d. Suppose that the interest rate is 5%. In percentage terms, what happens to this person's demand for money if her yearly income is reduced by 50%?
e. Summarize the effect of income on money demand. In percentage terms, how does this effect depend on the in- terest rate?
write a report based on the podcasts & the news article in the text and a critique as well (do you agree with Mankiw's view that "Consenting adults should be able to make economic trades
Money demand shocks will not affect the output level so long as the Fed pegs interest rates. True or false? Use an IS-LM diagram to explain your answer.
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When relationship-specific exchange occurs in complex contractural environments, the best way to purchase inputs is through - benefit associated with producing inputs within a firm?
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A city that operates automobile parking facilities is evaluating a proposal to erect and operate a structure for parking in its downtown area. Three designs for a facility to be built on available sites have been identified as follows, where all d..
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This is all the data you have: The CPI today (at any point in time--whenever "today" may be) stands at 228.5, this should be interpreted to mean that:
consider three alternative bonds that you might invest in each of which matures in one year. the following table shows
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