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

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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
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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) ==============================================================================...
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