If inflation and nominal interest rates are constant, at, Ask an Expert

Economics

Given a money demand function (M/P)d = L(i,Y) = Y/(5i)

If inflation and nominal interest rates are constant, at what rate, if any, will velocity grow?
Given a permanent (once and for all) rise in level of interest rates, how will it affect the level of velocity and the growth rate of velocity?

how to calculate growth rates of velocity/money supply etc. How to go about calculating the growth rate?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M9692094

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