In a hypothetical economy, people have the tendency to keep 20 percent of the real income in the form of cash. The country produces only one commodity i.e. Commodity Z. The price of Commodity Z is Rs.50 per unit. 200 units of Commodity Z are produced in the economy. Under cash balance approach, the demand for money is a. Rs.2000 b. Rs.10000 c. Rs.40 d. Rs.200

In a hypothetical economy, people have the tendency to keep 20 percent of the real income in the form of cash. The country produces only one commodity i.e. Commodity Z. The price of Commodity Z is Rs.50 per unit. 200 units of Commodity Z are produced in the economy. Under cash balance approach, the demand for money is a. Rs.2000 b. Rs.10000 c. Rs.40 d. Rs.200

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter7: Inflation

Section: Chapter Questions

Problem 16SQ

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