(i) Consider the following information. Using an equation (or equations), explain:

• The proportion of money people want to hold as currency (c) is 70%.
• The ratio of reserves to deposits () is 0.4 (i.e. 40%).
• The monetary base (H) is 7000 billion.
• Nominal income is 7500 billion.
• The demand for money is given by:$= (0.5 0.6).
• Recallthat$=$+$,that$=$andthat$=(1)$.

a) What is the demand for central bank money?

b) What is the equilibrium interest rate?

c) What is the overall supply of money?