1. When money changes hands rapidly, the amount of transactions carried out dollar, x, is high, and money velocity is high. Assume now that economies A are identical: output, Y, and the total supply of money, M are the same, excep money in economy B has a bad odor. The more money you hold the worse is th and the more you suffer-in direct proportion to your money holdings. Assume t each economy money demand is proportional to income, and that the money n is in equilibrium: M* = M. (a) In which country will the velocity of money be higher? Defend your answe (b) In which country will the price level be higher? Defend your answer and p intuition for the result. (c) In terms of the Baumol-Tobin model, how does a worsening of the money affect the optimal number of visits to the bank to withdraw money? Expla (d) Is your answer to (c) the same as for a change in the nominal interest Explain