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(0.872.8i).

If the monetary base is $69 billion and nominal income is $5.3 trillion, the equilibrium interest rate will be ______________ % (Round your response to two decimal places.)

Now suppose the monetary base(central bankmoney) increases to $123 billion.

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