Question $9.$ Suppose the money demand function $is\frac{M^d}{P}=\frac{0\mathrm{.}2Y}{i^{0\mathrm{.}5}}$

$a.$ Calculate the velocity $of$ money $ifi=4\%$

$b.If$ output $isY=1000$ and the money supply $is1200.$ What $is$ the price

level $P?$

$c.If$ expected inflation increases $by5\%$ what $is$ the new nominal interest

rate?

$d.$ What $is$ the new velocity $of$ money?