Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Business Economics Expert

Confidence on the demand for money is log M=14.666+.021logC-.036log r m- real money balance c consumer confidence r is interest rate paid on bank deposit. Based on this study How 5% increase impact the demand for money a .Increase or decrease 1.8%, drop .18% increase b .18%?

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M91530049

Have any Question?


Related Questions in Business Economics

You spoke with seven people you know and found that they

You spoke with seven people you know and found that they went out 2, 0, 1, 5, 0, 2, and 3 times last week. You then would choose to calculate a 95% (or another level) confidence interval for the population mean.

The sample distribution on individual iq scores raw scores

The sample distribution on individual IQ scores (raw scores) has a sample mean of 100 and a standard deviation of 16. What proportion of the sample mean will fall at or above a mean of 102.56? Round the answers to no mor ...

A monopolist faces a market demand curve given by py 100 y

A monopolist faces a market demand curve given by P(y) = 100 y. Its cost function is c(y) = y 2 + 20. (a) Find its profit - maximizing output level y and the market price p(y ). (b) Calculate its total revenue, total cos ...

Currently fringe benefits make up about 30 of us workers

Currently, fringe benefits make up about 30% of U.S. workers' total compensation. Suppose the U.S. government decides to tax fringe benefits as ordinary income. How might this affect the level of fringe benefits as a sha ...

Consider cy y2 2y 4 many firms have access to this

Consider: C(y) = y^2+ 2y + 4. Many firms have access to this technology, in fact so many that there is not room for all to profitably operate in the industry. The market demand for the product is given by P = 30-Y , wher ...

Assume that combined with borrowing and irrational

Assume that combined with borrowing and irrational exuberance have driven up the value of existing financial securities at a geometric rate, specifically from $4 to $8 to $16 to $32 to $64 to $128 over a six-year time pe ...

The distribution of seed weights for pumpkins is closely

The distribution of seed weights for pumpkins is closely approximated by a normal distribution. You know that 95% of the seeds weigh less than 0.68 grams and that 5% of the seeds weigh less than 0.36 grams. Suppose you s ...

A firm is considering a project that has the following

A firm is considering a project that has the following estimated cashflows: Increased sales to business of $100,000 for the next six years (starting in one year's time) Increased costs of $30,000 for the next six years ( ...

What is equi-marginal principle why does it have to be true

What is Equi-marginal principle? Why does it have to be true at interior optimum?

A farm has two types of trees 30 are orange trees o and 70

A farm has two types of trees: 30% are orange trees (O) and 70% are apple trees (A). Frost (F) has damaged 40% of the orange trees (F|O)=0.4 and 10% of apple trees. What is the probability that a randomly selected tree w ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As