Business, 03.12.2020 19:50 Shisuuu

A standard "money demand" function used by macroeconomists has the form ln left parenthesis m right parenthesis equals beta 0 plus beta 1 ln left parenthesis GDP right parenthesis plus beta 2 Upper Rln(m)=?0+?1ln(GDP)+?2R, 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 = 3.273.27 and beta 2?2 = negative 0.01-0.01. a) What is the expected change in m if GDP increases by 11?% The value of m is expected to increase increase decrease by approximately 3.273.27?%. ?(Round your response to the nearest integer)
b) What is the expected change in m if the interest rate increases from 11?% to 88?%? The value of m is expected to ? increase decrease by approximately nothing?%. ?(Round your response to the nearest integer?)

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A standard "money demand" function used by macroeconomists has the form ln left parenthesis m right...