Question

solve for B1 = 2.88 NOT 2.86, B2 is still -0.08, and increase by 8% NOT 5%

Econ 122B (Winter 2019) Homework: Week 3 Score: 0 of 1 pt Review Concept 8.3 A standard "money demand" function used by macroeconomists has the form Save 2016 (4 complete) HW Score: 30%, Question Help * In(m)= β0 + β11n(GDP) + β2R, Where m is the quantity of (real) money, GDP is the value of (real) gross domestic product and Ris the value of the nominal interest rate measured in percent per year. Supposed that β1-2.86 and β2-0.08. What is the expected change in m if GDP increases by 5%? The value of m is expected to L by approximately 13% (Round your respon teger) increase decrease Enter your answer in the answer box and then click Check Answer part remaining

Answer 1

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