Solved: Find the real money demand-nominal money, Operation Management

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Find the real money demand-nominal money

Solve the below problem:

Q: Suppose money demand for Econland is (M/P)d= 5000 + 0.2Y +1000i. a.Assume P=100, Y=1000 and i=0.1. Find the real money demand, nominal money demand and velocity. b.If price level doubles from P=100 to P=200. Find the real money demand, nominal money demand and velocity, comment how these variables differ than in part (a)

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Operation Management: Find the real money demand-nominal money

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Operation Management: Find the real money demand-nominal money

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