Money demand function, Suppose that County A has a money

Money demand function

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Reference no: EM13737169

Suppose that County A has a money demand function given by Md= 50 + 2Y - 5r, while Country B has a money demand function given by Md = 50 + 2Y -25r. From this, we can conclude that

A) the LM in A is steeper than in B

B) the LM in B is steeper than in A

C) the LM in A is vertical while the LM in B is horizontal

D) Country A is more "Keynesian" whereas Country B is more "classical" in structure.

Reference no: EM13737169

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