suppose the money demand function is 1000 02y 1000 r e required a calculate velocity if y 2000 r

Hello everyone. So the first part of the question says that calculate velocity if y is equals to

Question

Suppose the money demand function is = 1000 + 0.2Y - 1000 (r + πe). Required (a.) Calculate velocity if Y = 2000, r = 0.06, and πe = 0.04. (b.) If the money supply (Ms) is 2600, what is the price level? (c.) Now suppose the real interest rate rises to 0.11, but Y and Ms are unchanged. What happens to velocity and the price level? (d.) For part (c.), if the nominal interest rate were to rise from 0.10 to 0.15 over the course of a year, with Y remaining at 2000, what would the inflation rate be?

          Suppose the money demand function is
 = 1000 + 0.2Y - 1000 (r + πe).
Required
(a.) Calculate velocity if Y = 2000, r = 0.06, and πe = 0.04.
(b.) If the money supply (Ms) is 2600, what is the price level?
(c.) Now suppose the real interest rate rises to 0.11, but Y and Ms are unchanged. What happens to velocity and the price level?
(d.) For part (c.), if the nominal interest rate were to rise from 0.10 to 0.15 over the course of a year, with Y remaining at 2000, what would the inflation rate be?

Added by Bradley S.

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