Macroeconomics 12th Edition by Michael Parkin

تمرين 7

The spreadsheet provides data about the demand for money in Minland. Columns A and B show the demand for money schedule when real GDP (Yq) is $10 billion and Columns A and C show the demand for money schedule when real GDP (Y1) is $20 billion. The quantity of money is $3 billion.
What is the interest rate when real GDP is $10 billion Explain what happens in the money mar­ket in the short run if real GDP increases to $20 billion.