Assume given values of real GDP; Population; the nominal interest rate; and real transaction costs. If these variables are given, would you way that the following statements about the real demand for money are true, false or uncertain?
Agricultural societies have lower real money demand than industrial societies.
Dictatorships have higher real money demand than democracies.
Countries with larger fraction of persons who are elderly have higher real money demand.
Countries with a higher literacy rate have lower real money demand.