Question

Question: How much money will an individual hold to make
payment for the things he buys?

Assuming that:
an individual receives an income of Y at the beginning of
the period (t=0 e.g. start of the month);
(ii) the individual spends this income at a constant rate such that he has exactly no money left at the end of the month (t=1);

Therefore, the average inventory money held during the
period = Y/2 , which is also the amount that will be held at the
midpoint of the period t/2.