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Find the real money demand

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Reference no: EM131917599

Suppose money demand for Econland is (M/P)d= 5000 + 0.2Y +1000i.

a.Assume P=100, Y=1000 and i=0.1.

Find the real money demand, nominal money demand and velocity.

b.If price level doubles from P=100 to P=200.

Find the real money demand, nominal money demand and velocity, comment how these variables differ than in part (a)

Reference no: EM131917599

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