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This question refers to the Fundamental Equation of Monetarism, which assumes that (a) the demand of real money balances is a known function of )' (real GDP) and i (nominal interest rate); and (b) the money market is always in equilibrium. The hypothetical economy has moved from an initial situation (described in Table A) to a new situation (described in Table B). Concept Information Demand for real money L(Y, i) = Y - 50 xi Real income Y = 500 Nominal interest rate i = 2 Money supply M = 40,000 Table A (Initial situation) Concept Information Demand for real money L(Y, i) = Y - 50 xi Real income Y = 600 Nominal interest rate i =4 Money supply M = 80,000 Table B (New Situation) In this economy, the price level has doubled. True or False? Explain using the data provided in Tables A and B