subject
Business, 07.04.2020 18:00 jahmya123

Suppose the real money demand function is

Md/P = 2400 + 0.2Y - 10,000 (r + πe).

Assume M = 5000, πe = .03, and Y = 5000. If the price level were to decrease from 2.5 to 2.0, then the real interest rate would decrease by how many percentage points (assuming Md, πe, and Y are unchanged)?

A) 4

B) 5

C) 9

D) 14

ansver
Answers: 3

Another question on Business

question
Business, 22.06.2019 00:00
Which part/word/phrase in the passage refers to a business’s financing activity seen in a cash flow statement? nathan works as an accountant in a footwear manufacturing company. he is currently preparing the cash flow statement for his employer. during the given accounting period, the company purchased raw materials worth $25,000. it also bought new equipment worth $75,000 to increase its production output. further, it borrowed a long-term bank loan of $100,000 to facilitate further expansion. finally, the company spent $50,000 on advertising its latest brand of footwear in the market. {lol i guessed its "it borrowed a long-term bank loan of $100,000 to facilitate further expansion" and thats correct}
Answers: 1
question
Business, 22.06.2019 17:30
What is one counter argument to the premise that the wealth gap is a serious problem which needs to be addressed?
Answers: 1
question
Business, 22.06.2019 20:10
While cell phones with holographic keyboards are currently in the introduction stage of the industry life cycle, tablet computers are in the growth stage. in the context of this scenario, which of the following statements is true? a. the industry for cell phones with holographic keyboards will face greater competition than the tablet industry. b. while the industry for cell phones with holographic keyboards will focus more on product innovation, the tablet industry will focus more on process innovation. c. while the industry for cell phones with holographic keyboards can reap the benefits of economies of scale, the tablet industry will experience no such benefits. d. the industry for cell phones with holographic keyboards will face price competition, whereas, in the tablet industry, the mode of competition will be non-price.
Answers: 2
question
Business, 22.06.2019 20:40
Answer the questions about keynesian theory, market economics, and government policy. keynes believed that there were "sticky" wages and that recessions are caused by increases in prices. decreases in supply. decreases in aggregate demand (ad). increases in unemployment. keynes believed the government should increase ad through increased government spending, but not tax cuts. control wages to increase employment because of sticky wages. increase employment through tax cuts only. increase as through tax cuts. increase ad through either increased government spending or tax cuts. intervene when individual markets fail by controlling prices and production.
Answers: 2
You know the right answer?
Suppose the real money demand function is

Md/P = 2400 + 0.2Y - 10,000 (r + πe).
Questions
question
Mathematics, 15.09.2021 17:10
question
Mathematics, 15.09.2021 17:10
question
Mathematics, 15.09.2021 17:10
question
Computers and Technology, 15.09.2021 17:10
question
Mathematics, 15.09.2021 17:10
Questions on the website: 13722367