ps04 - change due to introduction and popularization of the...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
University of Toronto Macroeconomics, Theory and policy Masoud Anjomshoa Economics Department Assignment #4 Olivier Blanchard, David Johnson, Macroeconomics. Chapter 4, Questions 1 to 7. ============================================================================== 8- a- Suppose money demand is given by M d = $Y (0.25-i). Show and explain how does the demand for money
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: change due to introduction and popularization of the internet banking in this economy? b- Explain after the innovation in part a, which one of the following functions can characterize the demand for money? Why? i)- M d = $Y . (0.5-2i) ii)- M d = $Y (0.25-i)/2 M d = $Y 3/2 (0.25-i) ==============================================================================...
View Full Document

This note was uploaded on 04/10/2010 for the course ECO ECO202 taught by Professor Masoudanjamshoa during the Spring '10 term at University of Toronto- Toronto.

Ask a homework question - tutors are online