Answer:
1.The money demand will rise by 1.154%
2. The money demanded will fall and for a 1% increase in interest , the money demanded will fall by 0.38%
Explanation:
1. Money demand function
ln(m) = β0 +β1 ln(GDP)+β2R
Suppose β1 = 1.5 , β2 = −0.04 , GDP = $ 100 & R = 3%
ln(m) = 1.5 ln ($100) - 0.04 X 0.03
ln(m) = 6.91
m = 1002.247
Suppose the GDP increases by 1%; the new GDP will be = $ 101
ln(m) = 1.5 ln ($101) - 0.04 X 0.03
ln(m) = 6.92
m = 1013.81
If the GDP increases by 1% ,the money demand will rise by 1.154%
2.
If the interest rate increases from 3% to 4%
ln(m) = 1.5 ln ($100) - 0.04 X 0.04
ln(m) = 6.906155
m = $ 998.400
If the interest rate rises from 3% to 4% , the money demanded will fall and for a 1% increase in interest , the money demanded will fall by 0.38%
Answer:
A. The demand curve shifts to the left
Explanation:
Bread and butter are compliment goods. They offer the consumer a high utility when consumed together. An increase in demand for bread will increase the demand for butter. Changes in the price of bread will affect the demand for butter.
An increase in the price of bread leads to a decrease in demand. Reduction in bread demand means that butter consumption will decline as there will be less bread to apply butter. A decrease in demand will prompt the demand curve to shift inwards.
Answer:the answer is a market index is a measurement of sections of the stock market
Explanation:
It is computed from the price of selection stock it is a tool used by investors and financial managers to describe the market and to compare the return on specific Investments
Answer:
Cost of gasoline = $466.9
Explanation:
given data
miles in the trip = 3,700-mile
1 gallon = 23 miles
average price of gas = $2.90 per gallon
solution
we get here no of gallon required for the trip is express as
no of gallon required for the trip = = 160.87 gallon = 161 gallon
so we get here now Cost of gasoline that is
Cost of 161 gallons = Cost of gasoline for 3700 miles trip
Cost of gasoline = $2.90 per gallon × 161 gallon
Cost of gasoline = $466.9
Okay I can go to get outta this class now but I’m not sure what I mean I just feel like