The money demand equation found in Chapter 8 uses the letters k and h.
They
A) are variables.
B) are coefficients.
C) stay fixed.
D) a and c.
E) b and c.

Question

Quizplus · Accepted Answer

In the context of the money demand equation, k and h are coefficients that stay fixed, meaning they do not change with the variables in the equation. Coefficients are constants used to determine how a change in one variable affects another variable in mathematical models, including economic models like the money demand equation.

The Money Demand Equation Found in Chapter 8 Uses the Letters