(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
Correct Answer:
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Q3: The asset demand for money is downsloping
Q4: The equilibrium rate of interest in the
Q5: An increase in nominal GDP increases the
Q6: The opportunity cost of holding money
A) is
Q7: The transactions demand for money is most
Q9: It is costly to hold money because
A)
Q10: In which of the following situations is
Q11: If nominal GDP is $600 billion and,
Q12: The desire to hold money for transactions
Q13: Which of the following statements is correct?
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