Multiple Choice
From the Baumol-Tobin transaction demand model, we can derive that the
A) the interest elasticity of money demand is -1
B) income elasticity of money demand is +1
C) the interest elasticity of money demand is -1/2
D) income elasticity of money demand is +1/2
E) both C and D
Correct Answer:
Verified
Correct Answer:
Verified
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