Complete Question
Suppose that the money demand function takes the form
(M/P)^d = L(i,Y) = Y/(5i)
a. If output grows at rate and the nominal interest rate is constant, at what rate will the demand for real balances grow
b. What is the velocity of money in this economy
Answer:
a. See explanation below
b. Velocity = 5i
Step-by-step explanation:
a. Suppose that the nominal interest rate remains constant, the demand for real balances will grow at the same rate at which the output grows.
b.
Given that (M/P)^d = L(i,Y) = Y/(5i)
Money equation is written as;
Total Spending = MV
Where M = Amount of Money..
V = Velocity of Circulation
Total Spending = PY;
So, PY = MV --- Make V the subject of formula
PY/M = V --- Rearrange
V = PY/M ---- (1)
Also,
M/P = Y/5i --- Cross Multiply
M * 5i = P * Y --- Make 5i the subject of formula
5i = PY/M ---- (2)
Compare 1 and 2
5i = V = PY/M
So, 5i = V
V = 5i
Hence, Velocity = 5i
Step-by-step explanation:
these are composite functions : a function of a function of a value.
this can have many more "staging" levels.
in essence, we calculate the functional result of the innermost function (with the given value) first, use that functional result as input value for the next function to the left. use that functional result as input value for the next function to the left. ...
f(g(x)) means therefore we start with g(x).
g(f(x)) means we start with f(x).
that is all. it is really simple. and actuality fun (like a maze - remember e.g. computer games, where you walked through one door and excited through a totally different door ?).
f(g(0)) =
so, we need g(0) = 4 - 0² = 4
and now we calculate
f(4) = 7×4 + 6 = 28 + 6 = 34
therefore,
f(g(0) = 34
g(f(0)) =
so, we need f(0) = 7×0 + 6 = 6
and now we calculate
g(6) = 4 - 6² = 4 - 36 = -32
therefore,
g(f(0)) = -32
Answer:
(-1,1)(0,4)(2,7)(3,7)
Step-by-step explanation:
the arrows point from the x coordinate to the y coordinate in each in pair
Answer:
7 1/5 pounds in each basket
Step-by-step explanation:
Original pounds of onion = 9 3/5
New pounds of onion = 4 4/5
The onions then were mixed and kept in 2 baskets with each basket having equal pounds on onions
Total onions = Original pounds of onion + New pounds of onion
= 9 3/5 + 4 4/5
= 48/5 + 24/5
= 48+24/5
= 72 / 5 pounds
How many pounds of onions does each basket contain?
Pounds in each basket = Total pounds /2 basket
= 72/5 ÷ 2
= 72/5 × 1/2
= 72 / 10
= 7 2/10
= 7 1/5 pounds in each basket