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M&B3 3rd Edition by Dean Croushore
Edition 3ISBN: 978-1285167961M&B3 3rd Edition by Dean Croushore
Edition 3ISBN: 978-1285167961 Exercise 17
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&B3 3rd Edition by Dean Croushore
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