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lnleresl role [percent per yen) D 100 200 300 400 500 600 Real money [billions of 2005 yults) 11Ie gure above shows the demand tor
lnleresl role [percent per yen) D 100 200 300 400 500 600 Real money [billions of 2005 yults) 11Ie gure above shows the demand tor money in Kiteland. a. II the Kiteland Central Bank has set the quantity of money so that the equilibrium interest rate is 4- percent. What is the value in Yuks needed to have the interest rate at 4 percent? b, Suppose that Kiteland's Central Bank wants to raise the interest rate by 1 percentage point "mm 4% to 5%). By how much must it change the quantity of real money? i: In order to change the quantity of money to raise the interest rate by one percentage point, if the Central Bank uses an open market operation, does it make an open market purchase or an open market sale? Please explain your
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