Suppose that the money demand function is * - 600 – 75r where r is the interest rate in percent. The money supply M is S1500, and the price level Pis fixed at 5. Round answers to one place after the decimal when necessary. a. Graph the supply and demand of real money balances by moving points A and B to graph the demand for money (y and moving points Cand D to graph the supply of money (". 100 200 300 400 s00 s00 700 s00 s00 1,000 M/P Interest rate )

Suppose that the money demand function is * - 600 – 75r where r is the interest rate in percent. The money supply M is S1500, and the price level Pis fixed at 5. Round answers to one place after the decimal when necessary. a. Graph the supply and demand of real money balances by moving points A and B to graph the demand for money (y and moving points Cand D to graph the supply of money (". 100 200 300 400 s00 s00 700 s00 s00 1,000 M/P Interest rate )

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter13: Monetary Policy

Section: Chapter Questions

Problem 6E

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