Question
Suppose that a person's yearly income is $50,000. Also suppose her money demand function is given by Md = $Y(0.25-i), where the interest rate is
Suppose that a person's yearly income is $50,000. Also suppose her money demand function is given by Md = $Y(0.25-i), where the interest rate is 10%. If the interest rate increase from 10% to 15%, what will her demand for bonds be?
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Microeconomics
Authors: David Besanko, Ronald Braeutigam
5th edition
1118572270, 978-1118799062, 1118799062, 978-1118572276
