If Md = Y(0.40 - i) and original yearly income level is equal to 500,000 pesos at an interest rate of 20% , how much is the money demand?

1. What happens to the money demand if the yearly income level increases by 250,000 and interest rate increases also by 3%?
2. What happens to the money demand if the yearly income level increases by 400,000 and interest rate decreases by 5%?
3. After going through with this activity, what is your main learning point?