Assume thefollowing:

i. The public holds no currency.

ii. The ratio of reserves to deposits () is 0.08.

iii. The demand for money is given by Md=$Y(0.842.7i).

a. If the monetary base is $77 billion and nominal income is $4.8 trillion, the equilibrium interest rate will be 23.70% .

b. Now suppose the monetary base(central bankmoney) increases to $153 billion.

As aresult, the equilibrium interest rate becomes ____________ (Round your response to two decimal