The following table describes money demand and supply at different levels of interest rate:

Interest rate Transaction demandDt Asset demandDa Sm1 Sm2 Sm35% 400 1320 1500 1720 12806% 400 1100 1500 1720 12807% 400 880 1500 1720 12808% 400 660 1500 1720 1280

A. At money supply level of $ 1500, what is the equilibrium interest rate?

B. If the central bank decided to change the money supply to 1280, what will be the equilibrium interest rate?

C. Assume the monetary multiplier is 8. The central bank desires to decrease the money supply from 1500 to 1280, how much of government securities should the central bank sell?

D. At interest level 8% and money supply of $ 1500 billion, how much would be the surplus in the money market?