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How to calculate it 3. Suppose the monetary base in an economy is equal to 100 and nominal GDP is equal to 10,000. The money

How to calculate it

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3. Suppose the monetary base in an economy is equal to 100 and nominal GDP is equal to 10,000. The money demand function is given as Md = $Y (0.4 - 2i). Interest rates are measured as a fraction. Suppose that initially people don't hold any currency and that banks hold 10 percent of deposits as reserves. (a) (2 points) Calculate the equilibrium demand for central bank money

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