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A standard money demand function used by macroeconomists has the f.pdf

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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.

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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

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  • 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