Money and banking

Question 2 (10 points): Consider two countries A and B. In each country, the population of every generation is 5, 000 (N? = N! - 5, 000). . In country A each young person wants real money balances worth 100 goods. . In Country B, each young person wants real money balances worth 60 goods. . Assume that the total fiat money stock of country a is Ma = $50, 000 and that of country b is MP - 50, 000 pesos. Suppose the people in A and B can only hold their own currencies. . There is also a third type of people, called multinationals, with Nf = 10, 000. . When young each multinational wants real money balances worth 100 goods. . A multinational holds a fraction A of its money holdings in the form of dollars. Find the exchange rate e - Va/v. as a function of A