Money demand in an economy in which no interest is   paid on money is   Md   p == 500 + 0.2Y - 1000i.   a. Suppose that P = 100, Y = 1000, and i = 0.10. Find   real money demand, nominal money demand, and   velocity.   b. The price level doubles from P = 100 to P = 200.   Find real money demand, nominal money   demand, and velocity.

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