The following table shows Uma's estimated annual benefits of holding different amounts of money: Average money holdings

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The following table shows Uma's estimated annual benefits of holding different amounts of money:
Average money holdings ($)Total benefit ($)
500…………………………….35
600…………………………….47
700…………………………….57
800…………………………….65
900…………………………….71
1,000…………………………….75
1,100…………………………….77
1,200…………………………….77
How much money will Uma hold on average if the nominal interest rate is 9 percent? 5 percent? 3 percent? Assume that she wants her money holding to be a multiple of $100.
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Principles of Economics

ISBN: 978-0073511405

5th edition

Authors: Robert Frank, Ben Bernanke

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