Suppose the real money demand function is M^d/P= 2000 + 0.2Y - 10,000^{(i - i}^m^). Assume M = 5000, i^m = .04, π^e = .03, and Y = 5000. If the price level were to increase from 2.0 to 2.5, then the real interest rate would increase by how many percentage points?

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The Answer of Suppose the real money demand function is M^d/P= 2000 + 0.2Y - 10,000^{(i - i}^m^). Assume M = 5000, i^m = .04, π^e = .03, and Y = 5000. If the price level were to increase from 2.0 to 2.5, then the real interest rate would increase by how many percentage points?

Suppose the Real Money Demand Function Is Md/P = 2000

Suppose the Real Money Demand Function Is M^d/P= 2000