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Using the Quantity Equation MV=PY,a modified form of the of the money demand equation M Y (r, = 10' can be written as (v) =

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Using the Quantity Equation MV=PY,a modified form of the of the money demand equation

image text in transcribed
M Y (r, = 10' can be written as (v) = [0' where V=velocity andY =Output. Assume that a nation's money demand function is given by (My,= 0.25Y when\": 0.25Y ? J? J7 and i=nomina1 interest rate

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