Suppose the money demand function is
 MD = P× [(0.25 ×Y) ? (100 ×i)],where Y is expressed in billions of dollars and i is expressed in percentage points. If P = 2, Y = 5,000, and i = 5, then the real quantity of money demanded equals

A. 750.
B. 1,000.
C. 1,500.
D. 2,000.


Answer: A

Business

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