4. Suppose demand for real money balance is 500 + 0.2Y – 1000i. P If P = 10, Y= 1000, and I = 0.10, and the money market is in equilibrium, What is the equilibrium stock of nominal money? What is the velocity of money? Suppose there is an autonomous increase in money demand by 100, with a constant nominal money supply, P = 10, and Y = 1000, what is the equilibrium i? If the central bank wishes to maintain i = 0.10, what must the nominal money supply be? Draw and label completely a money market equilibrium diagram. Label equilibrium M/P and i with their actual values. Draw and carefully label the changes that result from (c) and (d) above. a. c. d. е.

4. Suppose demand for real money balance is 500 + 0.2Y – 1000i. P If P = 10, Y= 1000, and I = 0.10, and the money market is in equilibrium, What is the equilibrium stock of nominal money? What is the velocity of money? Suppose there is an autonomous increase in money demand by 100, with a constant nominal money supply, P = 10, and Y = 1000, what is the equilibrium i? If the central bank wishes to maintain i = 0.10, what must the nominal money supply be? Draw and label completely a money market equilibrium diagram. Label equilibrium M/P and i with their actual values. Draw and carefully label the changes that result from (c) and (d) above. a. c. d. е.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter14: Macroeconomic Policy: Tradeoffs, Expectations, Credibility, And Sources Of Business Cycles

Section: Chapter Questions

Problem 8E

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4. Suppose demand for real money balance is 500 + 0.2Y –1000i. P If P = 10, Y= 1000, and I= 0.10, and the money market is in equilibrium, What is the equilibrium stock of nominal money? b. What is the velocity of money? Suppose there is an autonomous increase in money demand by 100, with a constant nominal money supply, P = 10, and Y= 1000, what is the equilibrium i? d. If the central bank wishes to maintain i = 0.10, what must the nominal money supply be? Draw and label completely a money market equilibrium diagram. Label equilibrium M/P and i with their actual values. Draw and carefully label the changes that result from (c) and (d) above. а. c. е.
I would like to ask how to calculate c and d
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Dp
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