Assuming that the public wants to hold 25%% currency and the reserves to deposit is 10% and the demand for money is given by Md = $Y(0.7 - 5i). Initially the monetary base is 33 million pesos and nominal income is 22 billion pesos.

a. How much is the money multiplier? Show the computation

b. How much is the demand for central bank money? Show the computation

c. Find the equilibrium interest rate by setting the demand for and supply of central bank money equal. Show the computation

d. How much is the overall supply of money? How much is the overall demand for money? Are these two values equal at the equilibrium interest rate computed in letter C, yes or no? Show the computations

e. If the commercial bank has a total deposits of 33 million pesos, how much is the bank's reserve requirement for withdrawals and interbank transfers? How much can be lent out or invested by the bank? Show the computations.