Suppose the income elasticity of money demand is 0.75 and the interest elasticity of money demand is -0.2.By what percentage does real money demand change in each of the following circumstances?
a.Income rises 2%.
b.The interest rate rises from 4% to 5%.
c.Income falls 4%.
d.The interest rate falls from 6% to 4%.
e.Income rises 3% at the same time that the interest rate rises from 2% to 3%.

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The Answer of Suppose the income elasticity of money demand is 0.75 and the interest elasticity of money demand is -0.2.By what percentage does real money demand change in each of the following circumstances?
a.Income rises 2%.
b.The interest rate rises from 4% to 5%.
c.Income falls 4%.
d.The interest rate falls from 6% to 4%.
e.Income rises 3% at the same time that the interest rate rises from 2% to 3%.

Suppose the Income Elasticity of Money Demand Is 0