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Business, 05.05.2020 17:40 deejay4354

A standard "money demand" function used by macroeconomists has the form ln (m )equals beta 0 plus beta 1 ln (GDP )plus beta 2 Upper 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 beta 1 = 1.39 and beta 2 = negative 0.01. What is the expected change in m if GDP increases by 6%? The value of m is expected to ▼ increase decrease by approximately nothing%. (Round your response to the nearest integer) What is the expected change in m if the interest rate increases from 5% to 7%? The value of m is expected to ▼ increase decrease by approximately nothing%. (Round your response to the nearest integer)

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