Multiple Choice
Suppose the money demand function is MD = P × [(0.25 × Y) ? (100 × i) ],
Where Y is expressed in billions of dollars and i is expressed in percentage points.If P = 2, Y = 5,000, and i = 5, then the nominal quantity of money demanded equals
A) 750.
B) 1,000.
C) 1,500.
D) 2,000.
Correct Answer:
Verified
Correct Answer:
Verified
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