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MMLU-Pro / 7339 / a)Whatwould be the average holding of money (M) in rela-tionto transactions cost…

Problem

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question

a)Whatwould be the average holding of money (M) in rela-tionto transactions cost (b), amount of bonds (Z) , and theinterest rate (i)? b) How is the average money holding related to transactions cost and the interest rate?

category

economics

options

  1. M = (b + Z) / \surd(i)
  2. M =\surd(bZ * 2i)
  3. M = bZ/ 2i
  4. M =\surd(2bZ/ i)
  5. M = (bZ * i) / 2
  6. M =\surd(bZ/ 2i)
  7. M = 2\surd(bZ * i)
  8. M = \surd(bZ) * 2i
  9. M = bZ * \surd(2/i)
  10. M = \surd(b/i * Z^2)

src

stemez-Economics

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