Kz Wong Posted December 3, 2012 Share Posted December 3, 2012 [h=3]1)Sherman Peabody earns a monthly salary of $1,500, which he receives at the beginning of each month. He spends the entire amount each month at the rate of $50 per day. (Assume 30 days in a month.) The interest rate paid on bonds 10 % per month. It costs $4 every time Peabody sells bond. Describe briefly how Mr. Peabody should decide how much money to hold. Calculate Peabody’s optimal money holding. You can round to the nearest $0.50, and you need to consider only average money holding of more than $100 Suppose the interest rate rises to 15 percent. Find the Peabody’s optimal money holding at this new interest rate. What will happen if the interest rate increases to 20 percent? Graph your answer to b. and c. with interest rate on the vertical axis and the amount of money demanded on the horizontal axis. Explain why your graph slopes downwards. [/h]Someone help me~:blue: Quote Link to comment Share on other sites More sharing options...
evergreen Posted December 9, 2012 Share Posted December 9, 2012 This isn't a homework help forum. There are actually many economics help forums, you should google for some. Quote Link to comment Share on other sites More sharing options...
Kz Wong Posted December 10, 2012 Author Share Posted December 10, 2012 can u hlp me ? send me a link plz~~~~ Quote Link to comment Share on other sites More sharing options...
evergreen Posted December 10, 2012 Share Posted December 10, 2012 Here's a novel idea, why not open up that textbook/class lecture notes, study the material and try to draw your own conclusions? Quote Link to comment Share on other sites More sharing options...
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