Answer to Question #285072 in Economics for shizuka

Question #285072

Given the money demand function,

In [M/P]^D= a - bi + InY , if b = 1/3 and S = 0.03Y , what rate of money growth is required to obtain it?

How will your answer(s) change when: (a) b = 1/3 and S = 0.05Y

Explain the relationship between seigniorage revenues and the rate of inflation. Also Draw relevant diagram(s).

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