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Suppose that a country has the money demand function: (M / P)d = Y / (5i). With constant real gross domestic product of 1,000, the velocity of money would _____ if the nominal interest rate rose from 2 percent to 2.5 percent.

User Wayne B
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Answer:

Rise by 2.5

Step-by-step explanation:

The number of times money goes from one organization to another is the other wise known as the velocity of money.

User Meldim
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