A standard "money demand" function used by macroeconomists has the form ln(m)=0+1ln(GDP)+2R, Where m is the quantity of (real) money, GDP is the value of (real) gross domestic product, and R is the value of the nominal interest rate measured in percent per year. Supposed that 1 = 4.13 and 2 = 0.02. Part 2 What is the expected change in m if GDP increases by 7%? The value of m is expected to by approximately enter your response here.

1. A standard "money demand" function used by macroeconomists has the form
ln(m)=0+1ln(GDP)+2R,
Where m is the quantity of (real) money, GDP is the value of (real) gross domestic product, and
R is the value of the nominal interest rate measured in percent per year. Supposed that
1
=
4.13
and
2
=
0.02.
Part 2
What is the expected change in m if GDP increases by
7%?
The value of m is expected to
by approximately
enter your response here