(IS-LM and Aggregate Demand] Consider the equation FY = MV which essentially implies that every transaction in the economy must be paid with money….
I need help especially with B-D, thank you! This is for a intermediate Macro class. 1. (IS-LM and Aggregate Demand] Consider the equation FY = MV which essentially implies that every transaction in the economy must be paid with money. Money velocitycan in turn be written as a function of the nominal interest rate V = LE}. a] Assume L(i} = 23′ and E [if] […]