Derieve the demand for bonds.
Md=$Y(.35-i)
Person's wealth is $50,000
Yearly Income is $60,000
They didn't give what the interest rate is. Would the equation then be Md=21000-60000i?
To derive the demand for bonds, we should start by understanding the given equation:
Md = $Y(.35-i)
Here, Md represents the demand for bonds, Y represents income, i represents the interest rate, and .35 is a constant.
However, there is no direct mention of the interest rate in the given information. Without the interest rate, we cannot derive the demand for bonds accurately.
However, if we assume i to represent the interest rate, the formula would be:
Md = $21,000 - $60,000i
But please note that this assumption may not be accurate based on the given information.
To accurately derive the demand for bonds, you would need either the interest rate or additional information provided.