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Suppose that a person's wealth is $ and that her yearly income is $. Also suppose that her money demand function is given by: Calculate the demand function for bonds, . = nothing nothing( nothing) Suppose the interest rate increases by percentage points. As a result, the demand for bonds . A. remains unchanged. B. decreases by $. C. decreases by %. D. increases by $. In view of the above demand functions for money and bonds, one can conclude that an increase in wealth increases .
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Suppose that a person's wealth is $ and that her yearly income is $. Also suppose that her money dem...
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