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Find V Suppose the liquidity preference function is given by: L(i,Y)= = - 1,0007 Calculate velocity for each period, using the money demand equation: Y

Find V

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Suppose the liquidity preference function is given by: L(i,Y)= = - 1,0007 Calculate velocity for each period, using the money demand equation: Y V= - L(i,Y) along with the following table of values. (Round your responses to two decimal places.) Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Y (in billions) 12,100 12,400 12,250 12,400 12,900 13,200 13,400 Interest rate 0.04 0.07 0.02 0.06 0.08 0.04 0.08 Velocity 0 0

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