The money demand function ismd 1175-110iwhere i is the, Ask an Expert

Economics

The money demand function is

M^D = 1175-110i

where i is the interest rate in percent (do not convert it to a decimal fraction). The money supply: M^s=460

(a) What is the equilibrium interest rate?

(b) What happens to the equilibrium interest rate if the supply of money is reduced by 165?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91857607

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