Suppose the Money Demand Function Is M^D = P ×

question 25

Multiple Choice

Suppose the money demand function is M^D = P × [(0.25 × Y) ? (100 × i) ],
Where Y is expressed in billions of dollars and i is expressed in percentage points.If P = 2, Y = 5,000, and i = 5, then the real quantity of money demanded equals

• A)750.
• B)1,000.
• C)1,500.
• D)2,000.

---

Definitions:

Cortisol

A steroid hormone produced by the adrenal glands, involved in the body's stress response as well as metabolism and immune function.

Growth Hormone

A substance produced by the pituitary gland which promotes growth, the creation of new cells, and the renewal of cells in humans and animals.

Thyroid Hormone

Thyroid hormone includes several hormones produced by the thyroid gland, primarily thyroxine (T4) and triiodothyronine (T3), which regulate metabolism, energy generation, and developmental growth.

TSH

Thyroid Stimulating Hormone, a pituitary gland hormone that stimulates the thyroid gland to produce thyroid hormones, which regulate metabolism.