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The information in the following table is for the economy of SAIT Island: Rate of Interest Asset Transaction Total Demand (3) (%) Demand Demand (5)

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The information in the following table is for the economy of SAIT Island: Rate of Interest Asset Transaction Total Demand (3) (%) Demand Demand (5) 9 40 190 s '50 7 :60 6 70 5 80 4 90 If money supply is equal to $250. what must the equilibrium interest rate be? _% Do not enter a percentage sign ('36) while entering your answer. Q If the rate of interest is 8% and the money supply is $260, there will be a surplus of units D Suppose that the value of the money multiplier is equal to 5. What will be the maximum possible expansion in the money supply? Round your final answers to 2 decimal places. if necessary. Do not enter the comma , , a dollar sign ($}, or a percentage sign {96} while entering your answer. Calculate the desired reserve ratio: 96 Smith finds $1000 in coins and paper currency buried in her backyard and deposits it in her checking account. E

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