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Solve the problem Q.7 Consider the Baumol-Tobin model (5 points) i. If the nominal interest rate is 0.05, the cost of trips to the bank

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Q.7 Consider the Baumol-Tobin model (5 points) i. If the nominal interest rate is 0.05, the cost of trips to the bank is $4, and the ex penditures of a household is equal to $250, then how much money the household will demand? [This was a question of Quiz 3]

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