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SOLUTIONS AND EXPLANATION PLEASE. If Md = Y(0.40 - i) and original yearly income level is equal to 500,000 pesos at an interest rate of
SOLUTIONS AND EXPLANATION PLEASE.
If Md = Y(0.40 - i) and original yearly income level is equal to 500,000 pesos at an interest rate of 20% , how much is the money demand?
- What happens to the money demand if the yearly income level increases by 250,000 and interest rate increases also by 3%?
- What happens to the money demand if the yearly income level increases by 400,000 and interest rate decreases by 5%?
- After going through with this activity, what is your main learning point?
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Fundamentals of Managerial Economics
Authors: Mark Hirschey
9th edition
324584830, 978-0324588781, 032458878X, 978-0324584837
