Question
The demand for money is given by Md = $Y (0.4 - i), where $Y = 100 and the supply of money is $34. The
The demand for money is given by Md = $Y (0.4 - i), where $Y = 100 and the supply of money is $34.
The equilibrium interest rate is Answer percent.
If the central bank wants to increase i by 2%, it should set the supply of money at $Answer.
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Dynamics Of International Finance
Authors: Ruchi Mehrotra Joshi
1st Edition
1685078389, 978-1685078386
