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Can you explain to me how you would solve this question please Suppose that the demand for real money balances is: L(i,Y) = i -0.5

Can you explain to me how you would solve this question please

  1. Suppose that the demand for real money balances is:

L(i,Y) = i-0.5Y1.5

If real GDP goes from $100 billion to $110 billion then the demand for real balances:

A) Increases by 15%

B) Decreases by 15%

C) Increases by 1.5%

D) Decreases by 15%

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