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M & B 4th Edition by Dean Croushore
Edition 4ISBN: 978-1111823351M & B 4th Edition by Dean Croushore
Edition 4ISBN: 978-1111823351 Exercise 2
In Equation , suppose that the coefficients
suppose that the coefficients are estimated as ? = 0, ? = -0.5, and ? = 1. If the nominal interest rate were to rise by 1 percentage point and income were to fall by 3 percent, by what percent would the quantity of real money demanded change? If prices were to fall 1 percent, by what percent would the quantity of nominal money demanded change?
suppose that the coefficients are estimated as ? = 0, ? = -0.5, and ? = 1. If the nominal interest rate were to rise by 1 percentage point and income were to fall by 3 percent, by what percent would the quantity of real money demanded change? If prices were to fall 1 percent, by what percent would the quantity of nominal money demanded change?
Explanation
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In the first case the calculation is as...
M & B 4th Edition by Dean Croushore
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