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Lectures in Macroeconomics- Charles W. Upton Calculating with our Money Demand Function Part 1 r N = r R + e + r R e
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Calculating with our Money Demand Function The Basic Model
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Calculating with our Money Demand Function The Consumption Fraction
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Calculating with our Money Demand Function Period 1
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Calculating with our Money Demand Function Period 1
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Calculating with our Money Demand Function Period 2
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Calculating with our Money Demand Function Period 3
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Calculating with our Money Demand Function Period 4
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Calculating with our Money Demand Function An Illustration y 2 =$300,000, y 3 =$630,000, y 1 =y 4 =0 r R = 50%, e =50% = 1/3
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Calculating with our Money Demand Function An Illustration y 2 =$300,000, y 3 =$630,000, y 1 =y 4 =0 r R = 50%, e =50% = 1/3
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Calculating with our Money Demand Function An Illustration y 2 =$300,000, y 3 =$630,000, y 1 =y 4 =0 r R = 50%, e =50% = 1/3
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Calculating with our Money Demand Function Real and Nominal Rates y 2 =$300,000, y 3 =$630,000, y 1 =y 4 =0 r R = 50%, e =50% = 1/3 r N = r R + e + r R e
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Calculating with our Money Demand Function Fisher’s Law y 2 =$300,000, y 3 =$630,000, y 1 =y 4 =0 r R = 50%, e =50% = 1/3 r N = r R + e + r R e (Irving) Fisher’s Law
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Calculating with our Money Demand Function Fisher’s Law r N = r R + e + r R e r N = (0.50) +(0.50) +(0.50)(0.50) = 1.25
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Calculating with our Money Demand Function End ©2004 Charles W. Upton. All rights reserved
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