Money Demand Is Given by M^d/P = 1000

question 29

Multiple Choice

Money demand is given by M^d/P = 1000 + .2Y - 1000i.
Given that P = 200,Y = 2000,and i = .10,velocity is equal to

• A)0)65.
• B)0)75.
• C)1)33.
• D)1)54.

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Definitions:

Autonomic

Pertaining to the part of the nervous system that controls involuntary bodily functions such as heartbeat, digestion, and breathing.

Cell Body

Part of the neuron where information from thousands of other neurons is collected and integrated.

Synapse

The space between neurons where communication takes place through neurotransmitters.

Inhibitory Signals

neural or chemical messages that decrease the likelihood of a neuron firing, thus reducing or preventing an action or response.