subject
Business, 03.04.2020 20:09 aleilyg2005

The income elasticity of money demand is 2/3 and the interest elasticity of money demand is -0.1. Real income is expected to grow by 4.5% over the next year, and the real interest rate is expected to remain constant over the next year. The rate of inflation has been zero for several years.

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 06:40
After the 2008 recession, the amount of reserves in the us banking system increased. because of federal reserve actions, required reserves increased from $44 billion to $60 billion. however, banks started holding more reserves than required. by january 2009, banks were holding $900 billion in excess reserves. the federal reserve started paying interest on the excess reserves that the banks held. what possible impact will these unused reserves have on the economy?
Answers: 1
question
Business, 22.06.2019 20:10
Assume that a local bank sells two services, checking accounts and atm card services. the bank’s only two customers are mr. donethat and ms. beenthere. mr. donethat is willing to pay $8 a month for the bank to service his checking account and $2 a month for unlimited use of his atm card. ms. beenthere is willing to pay only $5 for a checking account, but is willing to pay $9 for unlimited use of her atm card. assume that the bank can provide each of these services at zero marginal cost.refer to scenario 17-5. if the bank is unable to use tying, what is the profit-maximizing price to charge for a checking account
Answers: 3
question
Business, 22.06.2019 22:30
Experts are particularly concerned about four strategic metal resources that are important for the u.s. economy and military strength, and that must be imported. what percentage does the u.s. import? *
Answers: 2
question
Business, 23.06.2019 00:30
An emerging methodology to integrate the effort of the development team and the operations team to improve the functionality and security of applications is known as
Answers: 1
You know the right answer?
The income elasticity of money demand is 2/3 and the interest elasticity of money demand is -0.1. Re...
Questions
question
Mathematics, 26.04.2021 14:00
question
Mathematics, 26.04.2021 14:00
question
Mathematics, 26.04.2021 14:00
question
Mathematics, 26.04.2021 14:00
question
Chemistry, 26.04.2021 14:00
question
History, 26.04.2021 14:00
question
Mathematics, 26.04.2021 14:00