Suppose that the money demand function is as follows :1 1. Derive an expression for the velocity of money. (10 points) 2. What is the velocity when the nominal interest rate is 25 percent. {5 points) 3. lfthe real output is 1,000 and nominal money supply is 3.000, what is the price level? {10 points] 4. What is the real money supply? (5 points)