Money demand is given by
Md/P = 1000 + .2Y - 1000i.
Given that P = 200,Y = 2000,and i = .10,real money demand is equal to

Name: Money demand is given by Md/P = 1000 + .2Y - 1000i. Given that P = 200,Y = 2000,and i = .10,real money demand is equal to
Brand: Quizplus
Rating: 4.8 (59 reviews)

Question

Quizplus · Accepted Answer

To find real money demand, substitute the given values into the equation: Md/P = 1000 + 0.2(2000) - 1000(0.10). This simplifies to Md/P = 1000 + 400 - 100 = 1300.

Money Demand Is Given by