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If the Income Elasticity of Money Demand Is 3/4 and the Interest

Question 100

Multiple Choice

If the income elasticity of money demand is 3/4 and the interest elasticity of money demand is -1/4,by what percent does money demand rise if income rises 10% and the nominal interest rate rises from 4% to 5%?


A) 7) 50%
B) 6) 25%
C) 5) 00%
D) 1) 25%

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