3. What happens on nominal GDP if money supply increases from $300 billion to $400 billion and velocity is constantly at 5. (1') 4. Suppose the liquidity preference function is: Y Li,Y)= -1000i Calculate velocity for each period 8 below: (4) 1. Period 1: Y = 12000, i = 0.05 2. Period 2: Y = 12500, i = 0.07 3. Period 3: Y = 12250, i = 0.03 4. Period 4: Y = 12500, i = 0.05 3. What happens on nominal GDP if money supply increases from $300 billion to $400 billion and velocity is constantly at 5. (1') 4. Suppose the liquidity preference function is: Y Li,Y)= -1000i Calculate velocity for each period 8 below: (4) 1. Period 1: Y = 12000, i = 0.05 2. Period 2: Y = 12500, i = 0.07 3. Period 3: Y = 12250, i = 0.03 4. Period 4: Y = 12500, i = 0.05