Consider the first-generation model of currency crises. Suppose that in year 1 money supply (?) is6,050billion, domestic credit (?) is5,000billion,?=??=?=1and??=4%. Real money demand is given by?(?)?and?(?)= 1if? = 4%. The interest semi-elasticity of money demand (?) is1. The economy begins in year 1. There is fiscal dominance and domestic credit (?) increases by10%each year. Output (?) is constant.

a)Assume that investors are myopic.

i. Complete the following table and explain your

calculations. [Round numbers to three decimal points]

Time M B R R/M P 1 2 3 4 5