The demand for money is given by Md = $Y (0.3 - i),where $Y = 100 and the supply of money is $20.
a.What is the equilibrium interest rate?
b.What is the impact on the interest rate if central bank money is increased to $25?

Question

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The Answer of The demand for money is given by Md = $Y (0.3 - i),where $Y = 100 and the supply of money is $20.
a.What is the equilibrium interest rate?
b.What is the impact on the interest rate if central bank money is increased to $25?

The Demand for Money Is Given by Md = $Y