Assume the Equation for the Total Demand for Money Is

question 98

Multiple Choice

Assume the equation for the total demand for money is L = .4Y + 80 - 4i, where L is the amount of money demanded, Y is gross domestic product, and i is the interest rate.If gross domestic product is $200 and the interest rate is 10 (percent) , what amount of money will society want to hold?

• A)$200
• B)$120
• C)$320
• D)$160

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