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 $2008 (without I) and the expenditure multiplier is 1.5. Money Market Investment Market WJ Ms 2.5 2.5 2 i-rate (%) :1.5 1.5 1 1 Mc 0.5 0.5 20 30 40 50 60 70 20 60 100 140 180 220 Money ($b) Investment ($b) What is the equilibrium interest rate? 02.0 01.75 01.5 035 Based upon this interest rate, how much gross private domestic investment (I) would there be? 080 100 01200 01.5 If this gross private domestics investment (1) was added into the economy, determine the new GDPe. O200 0300 O350 0400 Suppose, the Bank of Canada has determined that GDPf is $410B. What type of gap is Canada experiencing? ORefractionary OInflationary ORecessionary OTrumpessionary Calculate the new level of gross private domestic investment (1) that would cause Canada's GDPe to change to $4108? O-100 0140 0160 0180 Determine the new interest rate that will achieve this level of gross private domestic investment (1). 00.75 01.0 01.25 01.5 In order to change the interest rate, determine the BOC's new level of money supply (MS). 035 040 045 050