Question
2. In deriving the LM curve, we assumed that money demand was negatively related to the interest rate. Suppose instead that money demand depends only
2. In deriving the LM curve, we assumed that money demand was negatively related to the interest rate. Suppose instead that money demand depends only on the real value of transactions, Y . Draw the money demand curve for this case. What does the LM curve look like if money demand has this property? Explain
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Economics Today
Authors: Roger LeRoy Miller
16th edition
132554615, 978-0132554619
