In a hypothetical economy, money market is in balance. Money demand is determined by the equation L: 100 + 0.2 * Y - 600 *R where Y is the level of total income. and R = interest rate. Money demand is M = 0.4 * Y. Initially, the interest rate = 10%. What will happen to the money market if income increases by 10% and the interest rate remains unchanged? Solve and write solution plus choose one of the following:

a. There will be surplus supply of 4 monetary units.

b. There will be surplus demand of 84 monetary units.

c. There will be surplus demand of 4 monetary units.

d. There will be surplus supply of 88 monetary units.