Assume that the money demand function is (M/P) = Y - 50r, where r is the...
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Assume that the money demand function is (M/P) = Y - 50r, where r is the interest rate in percent. The money supply M is 2,000B and the price level P is 4. Use this information to derive the LM curve function/formula. The LM function/formula is Y = 650B + 50r Y = 650B+ 40r Y = 500B - 60r Y = 500B + 50r B) D) Assume that the money demand function is (M/P) = Y - 50r, where r is the interest rate in percent. The money supply M is 2,000B and the price level P is 4. Use this information to derive the LM curve function/formula. The LM function/formula is Y = 650B + 50r Y = 650B+ 40r Y = 500B - 60r Y = 500B + 50r B) D)
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D Y 500 B 50 r WORK ING M P 2 000 4 500 Therefore the LM functio... View the full answer
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-1259569197
8th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor-Yi Tsay, Philip Olds
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