Respuesta :
The real money demand is equal to $2,60,000
Money demand/ P = 1000+0.2Y -1000i
Money demand/200= 1000+0.2(2000)-1000(0.1)= 1000+400-100
=1300
Money demand /200 = 1300
Money demand = $1300*200
= $2,60,000
Money demand is the demand for real cash balances as people hold onto money to purchase goods and services. The higher the price level, the more money you need to buy a certain amount of goods.
For example, Margie keeps cash in her purse so she can buy groceries, which she does every week. The more cash you always have in your wallet, the less time you spend going to the bank, standing in line, and withdrawing more cash.
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