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Suppose the liquidity preference function is given by: Y L(,Y)= 10 - 1,0007 Calculate velocity for each period, using the money demand equation: Y V=

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Suppose the liquidity preference function is given by: Y L(,Y)= 10 - 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) 12,200 12,500 12,450 12,600 12,800 13,100 13,200 Interest rate 0.04 0.08 0.03 0.04 0.08 0.04 0.08 Velocity 0 0 0 0

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