We have the following information for on the economy Required Reserve Ratio held by the banks = 20% (or 0.2). Banks do not hold an excess reserve. Money multiplier =2.5. Supply of Monetary Base (or Central Bank Money) =$576 billion. Nominal Income, $Y =$8 Trillion

The monev demand function is given by Md =$Y(0.5-4iy

A. Calculate the Currency ratio (proportion of money that people hold in the form of currency),

(b) Calculate the supply of and demand for Central Bank money. Calculate the equilibrium interest rate.