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let the money demand function be: L(r,Y) =50 -25r +5Ywhere r is the real interest rate.Suppose the price level isP =2 and the money supply
let the money demand function be: L(r,Y) =50 -25r +5Ywhere r is the real interest rate.Suppose the price level isP =2 and the money supply is MS=500.Which of the following equations describes the equilibrium in the money market?
- Y-5r=40
- 2Y-5r=40
- Y-2r=40
- 3Y-5r=40
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