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[Money Growth Accounting] Assume that a consumer's nominal money demand is given Md (p, y, r) = p L(y, r) = py2/3 r-0.1 in which
[Money Growth Accounting] Assume that a consumer's nominal money demand is given Md (p, y, r) = p L(y, r) = py2/3 r-0.1 in which p is price level, y is income and r is real interest rate. Find the growth rate of nominal money demand when the inflation rate is 4%, income growth rate (dy/y) is 6% and the real interest rate growth rate (dr/r) is 20%.
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