If the interest elasticity of money demand is -0.1, by what percent does money demand change if the nominal interest rate rises from 2% to 3%?
(a) -0.1%
(b) 5%
(c) 0%
(d) -5%
Answer: D
If the interest elasticity of money demand is -0.1, by what percent does money demand change if the nominal interest rate rises from 2% to 3%?
(a) -0.1%
(b) 5%
(c) 0%
(d) -5%
Answer: D
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