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Real money-demand function Which of the following statements are relevant to the short-term static liquidity-preference model? Check all that apply. An increase in the money
Real money-demand function Which of the following statements are relevant to the short-term static liquidity-preference model? Check all that apply. An increase in the money supply lowers the quantity of money demanded. An increase in the money supply increases the quantity of money demanded. When the money supply increases, the nominal interest rate declines. When the money supply increases, the nominal interest rate rises. Which of the following equations best describes the relationship between the demand for money and the price level, if P denotes the price level, MD denotes the demand for money, and m denotes a function relating the nominal interest rate, i, and people's total real income, Y, to their demand for money? M^D times P = m(Y, i) M^D = P - m(Y, i) M^D = P times m(Y, i) The following table presents data for the price level and the demand for money in a hypothetical economy. Calculate the real money demand using the short-term static liquidity-preference model and fill in the last cell in this table
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