Question: 25 . Suppose the liquidity preference function is given by win 100 01 Use the money demand equation , along with the following table of


25 . Suppose the liquidity preference function is given by win 100 01 Use the money demand equation , along with the following table of values , to calculate the to calculate t elocity for each period . Period Period Period Period Period Period Period 7 Interest rate 0.05 0.07 0.03 O. O 0. 07 0.04 0.06 Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 ( in billions ) 12000 12 500 2 250 12.500 2 800 3.000 3. 200 Interest Rate 0.05 CO 0.03 0.05 0.07 0.04 0.06 In 1450 14925 1501 25 1512.5 530 1585 590 V = PIECE D 8. 28 8.38 8. 16 8.26 8.37 8. 20 2 20
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