A standard "money demand" function used by macroeconomists has the formIn(m) = o +/In(GDP) +₂RWhere 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 peryear. Supposed that ₁ = 3.83 and ₂ = -0.05.What is the expected change in mif GDP increases by 10%?The value of m is expected toby approximately%(Round your response to the nearest integer)What is the expected change in m if the interest rate increases from 3% to 7%?The value of m is expected to(Round your responby approximately%ger)increasedecrease

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A standard "money demand function used by macroeconomists has the form In(m)o +In(GDP) +R 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 = 3.83 and 2 = -0.05. What is the expected change in mif GDP increases by 10%? The value of m is expected to by approximately% (Round your response to the nearest integer) What is the expected change in m if the interest rate increases from 3% to 7%? The value of m is expected to (Round your respon by approximately% ger) increase decrease

A standard "money demand function used by macroeconomists has the form In(m)o +In(GDP) +R 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 = 3.83 and 2 = -0.05. What is the expected change in mif GDP increases by 10%? The value of m is expected to by approximately% (Round your response to the nearest integer) What is the expected change in m if the interest rate increases from 3% to 7%? The value of m is expected to (Round your respon by approximately% ger) increase decrease

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter10: Valuing Early-stage Ventures

Section: Chapter Questions

Problem 17DQ

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