The demand and supply of money may be estimated by the following equations: &nbs
The demand and supply of money may be estimated by the following equations:
Md = 2,250 – 250i
Ms = 1,000
a) Calculate the equilibrium i and illustrate it diagrammatically.
b) Calculate the new i under the following circumstances and illustrate it diagrammatically:
i) Ms = 1,125
ii) Md = 2,000 – 250i
PLEASE SHOW YOUR WORK ON HOW YOU GOT EACH ANSWER (INCLUDING STEP-BY-STEP CALCULATIONS)!
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The demand and supply of money may be estimated by the following
equations:
&nbs
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