The Bank of Canada has set money supply (MS) at $40B and the total demand for money, Md=Dt+Da, is given. The Canadian economy is in equilibrium in the Intermediate range of the SRAS curve at $200B (without I) and the expenditure multiplier is 2.0.

What is the equilibrium interest rate?

2.01.751.535Based upon this interest rate, how much gross private domestic investment (I) would there be?

801001201.5If this gross private domestics investment (I) was added into the economy, determine the new GDPe.

200300350400Suppose, the Bank of Canada has determined that GDPfis $360B. What type of gap is Canada experiencing?

RefractionaryInflationaryRecessionaryTrumpessionaryCalculate the new level of gross private domestic investment (I) that would cause Canada's GDPeto change to $360B?

80100160180Determine the new interest rate that will achieve this level of gross private domestic investment (I).

1.01.251.51.75In order to change the interest rate, determine the BOC's new level of money supply (MS).

35404550Please answer all parts of the question.