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amm1812
2 years ago
13

Money demand is given by md/p = 1000 .2y - 1000i. given that p = 200, y = 2000, and i = .10, real money demand is equal to?

Business
1 answer:
Marrrta [24]2 years ago
4 0

The real money demand is equal to $2,60,000

Money demand/ P = 1000+0.2Y -1000i

Money demand/200= 1000+0.2(2000)-1000(0.1)= 1000+400-100

=1300

Money demand  /200 = 1300

Money demand  = $1300*200

= $2,60,000

Money demand is the demand for real cash balances as people hold onto money to purchase goods and services. The higher the price level, the more money you need to buy a certain amount of goods.

Learn more about Money demand here:brainly.com/question/24109874

#SPJ4

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