Notice that household in the UK hold M1 relation to GDP 0.20 2015. Suppose that the function k(l) described the k(i)=0,2/N, where I is the nominal interest rate in per cent, and that the intererest rate short-term non-money bank deposits (the opportunity cont of holding M1) is 1%. Suppose that in the next few years the interest rate rises to 4% What is the resulting demand for money (as a fraction GDP). What is the elasticity of the demand for money measured in terms of the ebserved change in interest rates?