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14. Suppose the money supply is $25!] million dollars and the demand for money is given by QMD = 4m:- 4-01, where QM!) is in

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14. Suppose the money supply is $25!] million dollars and the demand for money is given by QMD = 4m:- 4-01", where QM!) is in millions of dollars. a. What is the equilibrium interest rate in this economy? b. If the Fed wishes to adjust the interest rate to 5%, should they buy or sell bonds to achieve this goal? o. Assuming that the desired rerve ratio is 25%, banks do not hold excess reserves, and there is no currency drain, what amount of bonds should they huyfsell in order to achieve their goal

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