If sara earns 4000 per month the interest rate is 4 percent


Referring to given question, if Sara's income increases to $6,000 per month, what happens to her demand for real money balances?

Question

If Sara earns $4,000 per month, the interest rate is 4 percent, and the cost of a call to the broker is $.75, what should be her transactions demand for real balances per month?

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Financial Management: If sara earns 4000 per month the interest rate is 4 percent
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