: What is the equilibrium rate of interest?____________

Part 2: Assume that the Bank of Canada buys bonds and increases the money supply to 340 What is the equilibrium rate of interest?____________

Part 3: A fall in income causes the demand for money to__________ by 60 billion. If the money supply is 100, what is the equilibrium rate of interest?____________

Part 4: Assuming the change in part 3, if money supply is 360, what is the equilibrium rate of interest?____________

Part 5: An increase in income causes the transaction demand for money to__________by 40 billion at each interest rate. (Assume the change in part 3 did not occur. Given a money supply of 180, what is the equilibrium rate of interest?____________

Part 6: Given the change in part 5, if money supply is 320, what is the equilibrium rate of interest?____________

Question 12: (8 points) Using the data in the table below, answer the following questions. (Hint: draw a graph when possible) Interest Rate% Money Demand (billions of dollars) 18 120 17 140 16 160 15 180 14 220 13 280 12 340 11 420 10 520 Assume that the money supply is equal to 180 (do not use % signs in your answers) Part 1: What is the equilibrium rate of interest? Part 2: Assume that the Bank of Canada buys bonds and increases the money supply to 340 What is the equilibrium rate of interest? Part 3: A fall in income causes the demand for money to by 60 billion. If the money supply is 100, what is the equilibrium rate of interest? Part 4: Assuming the change in part 3, if money supply is 360, what is the equilibrium rate of interest? Part 5: An increase in income causes the transaction demand for money to by 40 billion at each interest rate. (Assume the change in part 3 did not occur. Given a money supply of 180, what is the equilibrium rate of interest? Part 6: Given the change in part 5, if money supply is 320, what is the equilibrium rate of interest