Please show a breakdown analysisa study has estimated the

Reference no: EM13377721

Please show a breakdown analysis

A study has estimated the effect of changes in interest rates and consumer confidence on the demand for money to be: ln M = 14.666 + .021 ln C ? 0.036 ln r, where M denotes real money balances, C is an index of consumer confidence, and r is the interest rate paid on bank deposits. Based on this study we know that the interest elasticity is:
a unitary.
b zero.
c very elastic.
d very inelastic.

Reference no: EM13377721

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