The following data was compiled by the BLYS-Ful Pharmaceutical Group. Draw the graph showing the assets...
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The following data was compiled by the BLYS-Ful Pharmaceutical Group. Draw the graph showing the assets demand curve.(2pts) Interest rate (%) 12 10 8 6 (Billions) Asset demand $50 80 110 140 (Billions) Total demand $ $ $ a. Assume that each dollar held for transactions purposes is spent on the average five (5) times per year to buy final goods and services. If the nominal G.D.P. is $15,000 billion ($15 trillion), what is the transaction demand? (3pts) b. Using your answer to part "a," complete the table above. Note: Show your work. (3pts) Hint: Transactions demand for money (D₁) is nominal GDP divided by the number of times a dollar held for transactions is spent. The following data was compiled by the BLYS-Ful Pharmaceutical Group. Draw the graph showing the assets demand curve.(2pts) Interest rate (%) 12 10 8 6 (Billions) Asset demand $50 80 110 140 (Billions) Total demand $ $ $ a. Assume that each dollar held for transactions purposes is spent on the average five (5) times per year to buy final goods and services. If the nominal G.D.P. is $15,000 billion ($15 trillion), what is the transaction demand? (3pts) b. Using your answer to part "a," complete the table above. Note: Show your work. (3pts) Hint: Transactions demand for money (D₁) is nominal GDP divided by the number of times a dollar held for transactions is spent.
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To draw the assets demand curve well plot the interest rate on the xaxis and the asset demand on the ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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