How to calculate growth rates of velocity-money supply

Reference no: EM13222422

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?

Reference no: EM13222422

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