Consider an open economy with fixed exchange rate ED/F = E*. The money demand is: Y L(RD, Y) = 1 + RD where Ro is the domestic interest rate and Y is the output. the price level P is 1. Part a (5 marks) The money market is equilibrium. Find the domestic interest rate Rp in terms of Y and MS. ** Part b (5 marks) Suppose that the economy is booming, so that Y is growing at 3% per year. Find the rate of money supply growth needed to keep the