Question

Money demand is given by Md = P × (500 + 0.5Y ? 500i) Where Y = 3000, r = 4%, ?e = 6% Question 15 (4 points) Question 15: What is the real money demand? A. less than or equal to 1600 B. greater than 1600 and less than or equal to 1700 C. greater than 1700 and less than or equal to 1800 D. greater than 1800 and less than or equal to 1900 E. greater than 1900 Question 16 (4 points) Question 16: If the money supply is 3900, what is the equilibrium price that clears the asset market? A. less than or equal to 1.5 B. greater than 1.5 and less than or equal to 1.7 C. greater than 1.7 and less than or equal to 1.9 D. greater than 1.9 and less than or equal to 2.1 E. greater than 2.1 Question 17 (4 points) Question 17: Other things held unchanged (e.g., money supply fixed at 3900), now the output level increases to 4000, what is the new equilibrium price that clears the asset market? A. less than or equal to 1.5 B. greater than 1.5 and less than or equal to 1.7 C. greater than 1.7 and less than or equal to 1.9 D. greater than 1.9 and less than or equal to 2.1 E. greater than 2.1 Question 18 (4 points) Question 18: Other things held unchanged (e.g., output staying at 3000), now money supply increases to 4875, what is the new equilibrium price that clears the asset market? A. less than or equal to 1.5 B. greater than 1.5 and less than or equal to 1.7 C. greater than 1.7 and less than or equal to 1.9 D. greater than 1.9 and less than or equal to 2.1

          Money demand is given by Md = P × (500 + 0.5Y ? 500i)
Where Y = 3000, r = 4%, ?e = 6%
Question 15 (4 points)
Question 15: What is the real money demand?
A. less than or equal to 1600
B. greater than 1600 and less than or equal to 1700
C. greater than 1700 and less than or equal to 1800
D. greater than 1800 and less than or equal to 1900
E. greater than 1900
Question 16 (4 points)
Question 16: If the money supply is 3900, what is the equilibrium price that clears the asset market?
A. less than or equal to 1.5
B. greater than 1.5 and less than or equal to 1.7
C. greater than 1.7 and less than or equal to 1.9
D. greater than 1.9 and less than or equal to 2.1
E. greater than 2.1
Question 17 (4 points)
Question 17: Other things held unchanged (e.g., money supply fixed at 3900), now the output level increases to 4000, what is the new equilibrium price that clears the asset market?
A. less than or equal to 1.5
B. greater than 1.5 and less than or equal to 1.7
C. greater than 1.7 and less than or equal to 1.9
D. greater than 1.9 and less than or equal to 2.1
E. greater than 2.1
Question 18 (4 points)
Question 18: Other things held unchanged (e.g., output staying at 3000), now money supply increases to 4875, what is the new equilibrium price that clears the asset market?
A. less than or equal to 1.5
B. greater than 1.5 and less than or equal to 1.7
C. greater than 1.7 and less than or equal to 1.9
D. greater than 1.9 and less than or equal to 2.1

Money demand is given by Md = P × (500 + 0.5Y ? 500i)
Where Y = 3000, r = 4%, ?e = 6%
Question 15 (4 points)
Question 15: What is the real money demand?
A. less than or equal to 1600
B. greater than 1600 and less than or equal to 1700
C. greater than 1700 and less than or equal to 1800
D. greater than 1800 and less than or equal to 1900
E. greater than 1900
Question 16 (4 points)
Question 16: If the money supply is 3900, what is the equilibrium price that clears the asset market?
A. less than or equal to 1.5
B. greater than 1.5 and less than or equal to 1.7
C. greater than 1.7 and less than or equal to 1.9
D. greater than 1.9 and less than or equal to 2.1
E. greater than 2.1
Question 17 (4 points)
Question 17: Other things held unchanged (e.g., money supply fixed at 3900), now the output level increases to 4000, what is the new equilibrium price that clears the asset market?
A. less than or equal to 1.5
B. greater than 1.5 and less than or equal to 1.7
C. greater than 1.7 and less than or equal to 1.9
D. greater than 1.9 and less than or equal to 2.1
E. greater than 2.1
Question 18 (4 points)
Question 18: Other things held unchanged (e.g., output staying at 3000), now money supply increases to 4875, what is the new equilibrium price that clears the asset market?
A. less than or equal to 1.5
B. greater than 1.5 and less than or equal to 1.7
C. greater than 1.7 and less than or equal to 1.9
D. greater than 1.9 and less than or equal to 2.1

Added by Stephanie H.

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