Assume That the Money Demand Function Is (M / P)^d

question 16

Multiple Choice

Assume that the money demand function is (M / P) ^d = 2,200 - 200r, where r is the interest rate in percent. If the price level is fixed at P = 2, and the Bank of Canada wants to fix the interest rate at 7 percent, it should set the money supply at:

• A)2,000.
• B)1,800.
• C)1,600.
• D)1,400.

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The act of initiating a legal action with the intent to harass or to unjustly harm another party.

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