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    Question

    Transaction demand for money, Mt = 0.5Y. Speculative demand for money, Msp = 100 – 250 i

    Money supply Ms = 300

      LM equation from the above data is

    A i = .002Y + 0.80 Correct Answer Incorrect Answer
    B i = .020Y – 0.80 Correct Answer Incorrect Answer
    C i = .207Y + 0.67 Correct Answer Incorrect Answer
    D i = .002Y – 0.80 Correct Answer Incorrect Answer

    Solution

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