4. Suppose money demand for Econland is (M/P = 5000 + 0.2Y +1000i. a. Assume P=100, Y=1000 and in0.1. Find the real money demand, nominal money demand and velocity. b. If price level doubles from P=100 to P=200. Find the real money demand, nominal monex demand and velority comment how these variahles differ than in part (a)

4. Suppose money demand for Econland is (M/P = 5000 + 0.2Y +1000i. a. Assume P=100, Y=1000 and in0.1. Find the real money demand, nominal money demand and velocity. b. If price level doubles from P=100 to P=200. Find the real money demand, nominal monex demand and velority comment how these variahles differ than in part (a)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Can the shock be a permanent change, positive or negative, in firms productivity λ? Motivate your answer.
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