What real interest rate consistent with equilibrium in asset, Microeconomics

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What real interest rate consistent with equilibrium in asset

In a particular economy the real money demand function is
Md/P=3000+0.1Y-10000i

Assume that M=6000, P=2.0, πe = 0.02

(a) What real interest rate r is consistent with equilibrium in the asset market when Y = 8000?
(b) What real interest rate r is consistent with equilibrium in the asset market when Y = 9000?
(c) Graph the LM curve.

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Microeconomics: What real interest rate consistent with equilibrium in asset

Reference No:- TGS042492

Have a Question? (oR Write a Review)

Recent Questions Asked Microeconomics

Q : Gain or loss does realize on the formation of corporation

Q : Graph the is curve for economy

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Q : What real interest rate consistent with equilibrium in asset

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Request for Solution File

Ask an Expert for Answer!!

Microeconomics: What real interest rate consistent with equilibrium in asset

Reference No:- TGS042492

Recent Questions Asked Microeconomics

Q : Gain or loss does realize on the formation of corporation

Q : Graph the is curve for economy

Q : Phase of handling cash receipts

Q : What should record the cost of the land and new building

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Q : Break-even point in units problem

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Q : What should be the interest capitalized for 2013

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