Friday

August 22, 2014

August 22, 2014

Posted by **Bill** on Thursday, February 8, 2007 at 2:16pm.

Md=$Y(.35-i)

Person's wealth is $50,000

Yearly Income is $60,000

I really have to idea on how to derieve the demand. Should I just put in the income($60,000) at $Y and solve the equation?

Daang, I thought my math was hard.

I don't know but wish you the BEST of luck.

Bill, I think you need more information. I presume your i is interest rate, which is missing.

They didn't give what the interest rate is. Would the equation then be Md=21000-60000i?

The Md equation is the demand for money. You are expected to derive the demand for bonds from this. The two are closely related. I would say:

Bd = $Y(ai)

where a > 0, because demand for bonds increases with the interest rate.

**Related Questions**

Economics(Repost) - Derieve the demand for bonds. Md=$Y(.35-i) Person's wealth ...

Economics - Written Answer: Show calculations and respond to questions for the ...

ecomonics - I am trying to understand the math part of supply and demand . I am ...

Economics - Annual demand and supply for the Entronics company is given by: QD...

Microeconomics - University of Boston - 4. If Cassandra bought 16 cotton blouses...

math - 1) a company manufactures and sells a specialty watch. the financial ...

math - 1) a company manufactures and sells a specialty watch. the financial ...

ECONOMICS - The following relations describe the supply and demand for posters. ...

Microeconomics - I put this question on the board before. What I am not clear on...

algebra,help - I am clueless about this one...can someone help me with it ......