Final answer:
The demand for nonmonetary assets at a nominal interest rate of 5% is $5,750.
Step-by-step explanation:
To calculate the demand for nonmonetary assets at the nominal interest rate of 5%, we need to understand the relationship between the demand for money and the demand for nonmonetary assets.
At a nominal interest rate of 5%, the total demand for money is given as $1,750.
Given that the supply of money is $2,500 and the supply of nonmonetary assets is $7,500, we can calculate the demand for nonmonetary assets using the equation:
Supply of Nonmonetary Assets = Demand for Nonmonetary Assets + Demand for Money
Based on this equation, we can rearrange it to find the demand for nonmonetary assets:
Demand for Nonmonetary Assets = Supply of Nonmonetary Assets - Demand for Money
Substituting the given values, we have:
Demand for Nonmonetary Assets = $7,500 - $1,750 = $5,750.
Therefore, the demand for nonmonetary assets at the nominal interest rate of 5% is $5,750.
vvFinal answer:
The demand for nonmonetary assets at a nominal interest rate of 5% is $5,750.
Step-by-step explanation:
To calculate the demand for nonmonetary assets at the nominal interest rate of 5%, we need to understand the relationship between the demand for money and the demand for nonmonetary assets.
At a nominal interest rate of 5%, the total demand for money is given as $1,750.
Given that the supply of money is $2,500 and the supply of nonmonetary assets is $7,500, we can calculate the demand for nonmonetary assets using the equation:
Supply of Nonmonetary Assets = Demand for Nonmonetary Assets + Demand for Money
Based on this equation, we can rearrange it to find the demand for nonmonetary assets:
Demand for Nonmonetary Assets = Supply of Nonmonetary Assets - Demand for Money
Substituting the given values, we have:
Demand for Nonmonetary Assets = $7,500 - $1,750 = $5,750.
Therefore, the demand for nonmonetary assets at the nominal interest rate of 5% is $5,750.
Final answer:
The demand for nonmonetary assets at a nominal interest rate of 5% is $5,750.
Step-by-step explanation:
To calculate the demand for nonmonetary assets at the nominal interest rate of 5%, we need to understand the relationship between the demand for money and the demand for nonmonetary assets.
At a nominal interest rate of 5%, the total demand for money is given as $1,750.
Given that the supply of money is $2,500 and the supply of nonmonetary assets is $7,500, we can calculate the demand for nonmonetary assets using the equation:
Supply of Nonmonetary Assets = Demand for Nonmonetary Assets + Demand for Money
Based on this equation, we can rearrange it to find the demand for nonmonetary assets:
Demand for Nonmonetary Assets = Supply of Nonmonetary Assets - Demand for Money
Substituting the given values, we have:
Demand for Nonmonetary Assets = $7,500 - $1,750 = $5,750.
Therefore, the demand for nonmonetary assets at the nominal interest rate of 5% is $5,750.