Question
Using the real money demand and average real money balance from the Baumol-Tobin model, M/P=sqrt(YF/2i) Show How to Plot what happens to the money-demand curvewhen
Using the real money demand and average real money balance from the Baumol-Tobin model, M/P=sqrt(YF/2i)
Show How to Plot what happens to the money-demand curvewhen the ATM was invented on the demand for money. (We assume this makes it easy to obtain cash).
How to determine What factor does it affect and do we hold more money or less money?
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Managerial Economics and Business Strategy
Authors: Michael R. baye
7th Edition
978-0073375960, 71267441, 73375969, 978-0071267441
