« previous next »

Author Question: Explain why one can write the demand for money as the price level times a function of the interest ... (Read 10 times)

saraeharris

  • Hero Member
  • *****
  • Posts: 546
on: Jun 30, 2018
Explain why one can write the demand for money as the price level times a function of the interest rate and real income as follows: = PxL (R, Y)
 
  What will be an ideal response?

Question 2

If the tariff on computers is not changed, but domestic computer producers shift from domestically produced semiconductors to imported components, then the effective rate of protection in the computer industry will
 
  A) increase.
  B) decrease
  C) remain the same.
  D) depend on whether computers are PCs or Supercomputers.
  E) no longer apply.


reelove4eva

  • Sr. Member
  • ****
  • Posts: 332
Reply #1 on: Jun 30, 2018
Answer to Question 1

The aggregate money demand is proportional to the price level. Imagine that all prices in an economy doubled, but the interest rate and everyone's real incomes remained unchanged. Then, the money value of each individual's average daily transactions would simply double, as would the amount of money each wishes to hold.

Answer to Question 2

A


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

saraeharris

  • Hero Member
  • *****
  • Posts: 546
Reply #2 on: Jun 30, 2018
Thank you :)


reelove4eva

  • Sr. Member
  • ****
  • Posts: 332
Reply #3 on: Jun 30, 2018
Happy to help you


« previous next »
 

Did you know?

There are 60,000 miles of blood vessels in every adult human.

Did you know?

Drying your hands with a paper towel will reduce the bacterial count on your hands by 45–60%.

Did you know?

Not getting enough sleep can greatly weaken the immune system. Lack of sleep makes you more likely to catch a cold, or more difficult to fight off an infection.

Did you know?

There can actually be a 25-hour time difference between certain locations in the world. The International Date Line passes between the islands of Samoa and American Samoa. It is not a straight line, but "zig-zags" around various island chains. Therefore, Samoa and nearby islands have one date, while American Samoa and nearby islands are one day behind. Daylight saving time is used in some islands, but not in others—further shifting the hours out of sync with natural time.

Did you know?

Dogs have been used in studies to detect various cancers in human subjects. They have been trained to sniff breath samples from humans that were collected by having them breathe into special tubes. These people included 55 lung cancer patients, 31 breast cancer patients, and 83 cancer-free patients. The dogs detected 54 of the 55 lung cancer patients as having cancer, detected 28 of the 31 breast cancer patients, and gave only three false-positive results (detecting cancer in people who didn't have it).

The structure and function of the human testis. The structure and function of the human testis.
The effects of aging can be seen in the decline in function of many physiological systems. The effects of aging can be seen in the decline in function of many physiological systems.
Acute Stress, Glucocorticoid Level, Synaptic Plasticity, and Learning Acute Stress, Glucocorticoid Level, Synaptic Plasticity, and Learning
Normal oxygen sensor frequency is from about one to five times per second. Normal oxygen sensor frequency is from about one to five times per second.
Histone and pol II CTD modifications as a function of gene position Histone and pol II CTD modifications as a function of gene position
Derivative of Inverse Trig Function Derivative of Inverse Trig Function
Video: ETC Protein Complexes & Chemiosmosis (Total ATP Production and ATP Synthase)

For a complete list of videos, visit our video library