(Advanced analysis) Assume the equation for the total demand for money is L = 0.4Y + 80 - 41, where Lis the amount of money demanded, Yis gross domestic product, and i is the interest rate. If gross domestic product is $250 and the interest rate is 9 percent, what amount of money will society want to hold?

(Advanced analysis) Assume the equation for the total demand for money is L = 0.4Y + 80 - 41, where Lis the amount of money demanded, Yis gross domestic product, and i is the interest rate. If gross domestic product is $250 and the interest rate is 9 percent, what amount of money will society want to hold?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter22: Money Growth And Inflation

Section: Chapter Questions

Problem 3QR

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