Question: Suppose the liquidity preference function is given by: Y LGIN= 5 -1,0001 Calculate velocity for each period, using the money demand equation: Y V= L(1,7)
Suppose the liquidity preference function is given by: Y LGIN= 5 -1,0001 Calculate velocity for each period, using the money demand equation: Y V= L(1,7) along with the following table of values. (Round your responses to two decimal places.) Y (in billions) Interest rate Velocity Period 1 12,000 0.04 Period 2 12,600 0.08 Period 3 12,250 0.02 Period 4 12,400 0.05 Period 5 12.900 0.07 Period 6 13.100 0.03 Period 7 13,200 0.08
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