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(Advanced Analysis) Assume the Equation for the Total Demand for Money

Question 245

Multiple Choice

(Advanced analysis) Assume the equation for the total demand for money is L = 0.4Y + 80 - 4i, where L is the amount of money demanded, Y is gross domestic product, and i is the interest rate.If gross domestic product is $200 and the interest rate is 10 (percent) , what amount of money will society want to hold?


A) $200
B) $120
C) $320
D) $160

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