5. (Appendix 9.B) Recall from Chapter 7 that an increase in im, the nominal interest rate on money, increases the demand for money. To capture that effect, let’s replace Eq. (9.B.17) with Md/P = /0 + /YY - /r(r + pe - im).

How does this modification change the solutions for the general equilibrium values of the variables discussed in Appendix 9.B, including employment, the real wage, output, the real interest rate, and the price level?