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An economy has the following money demand function: (M/P)^d= .2Y/i^(1/2) Derive an expression for the velocity of money. What does velocity depend on? Explain why
An economy has the following money demand function: (M/P)^d= .2Y/i^(1/2)
Derive an expression for the velocity of money. What does velocity depend on? Explain why this dependency might occur.
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