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Problem: Suppose the demand for money is given by Md = $Y(.20 -.25i). In addition, assume that the supply of money equals $3,000 billion. If the supply and demand for money are equal to each other, and the interest rate at this equilibrium point is 1.5 percent (.015), what is the value for nominal GDP ($Y)? Explain your answers and provides examples.

Macroeconomics, Economics

  • Category:- Macroeconomics
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