Final answer:
Money demand equation is given and values are substituted into the equation, but there is not enough information to calculate the velocity.
Step-by-step explanation:
The formula for calculating money demand is M^d/P = 1000 + .2Y - 1000i, where M^d is the demanded money supply, P is the price level, Y is the income, and i is the interest rate. To find the velocity, we substitute the given values into the equation. Given that P = $200, Y = $2000, and i = 0.10, we can calculate:
M^d/P = 1000 + (.2 * $2000) - (1000 * 0.10)
M^d/P = 1000 + $400 - $100
M^d/P = $1300
The velocity of money is equal to the nominal GDP divided by the money supply. Since there is no information given about the nominal GDP or the money supply in this question, we cannot calculate the velocity. Therefore, the correct answer is Not enough information provided.