where res is the reserve-deposit ratio and r is the real interest rate. The currency-deposit ratio is 0.45, the price level is fixed at 1.5, and the monetary base is 60. The real quantity of money demanded is: L(Y, 1) = 0.4Y - 91 where Y is real output and i is the nominal interest rate. Assume that the expected inflation rate is zero so that the nominal interest rate and the real interest rate are equal. a. Ifr=i = 0.10, what are the reserve-deposit ratio, money multiplier, and money supply? For what real output, Y, does a real interest rate of 0.10 clear the asset market? reserve-deposit ratio = .15 (round to two decimal places) money multiplier = 2.42 (round to two decimal places) money supply = 145 (round to the nearest whole number) Y = 244 (round to the nearest whole number) b. Now assume that r=i = 0.05. What are the reserve-deposit ratio, money multiplier, and money supply? For what real output, Y, does a real interest rate of 0.05 clear the asset market? reserve-deposit ratio = 23 (round to two decimal places) money multiplier = 2.13 (round to two decimal places) money supply = 128 (round to the nearest whole number) Y = 214 (round to the nearest whole number) c. Suppose that the reserve-deposit ratio is fixed at the value you found when r=i = 0.10 and isn't affected by interest rates. If r=i = 0.05, for what output, Y, does the asset market clear in this case? Y = (round to the nearest whole number) where res is the reserve-deposit ratio and r is the real interest rate. The currency-deposit ratio is 0.45, the price level is fixed at 1.5, and the monetary base is 60. The real quantity of money demanded is: L(Y, 1) = 0.4Y - 91 where Y is real output and i is the nominal interest rate. Assume that the expected inflation rate is zero so that the nominal interest rate and the real interest rate are equal. a. Ifr=i = 0.10, what are the reserve-deposit ratio, money multiplier, and money supply? For what real output, Y, does a real interest rate of 0.10 clear the asset market? reserve-deposit ratio = .15 (round to two decimal places) money multiplier = 2.42 (round to two decimal places) money supply = 145 (round to the nearest whole number) Y = 244 (round to the nearest whole number) b. Now assume that r=i = 0.05. What are the reserve-deposit ratio, money multiplier, and money supply? For what real output, Y, does a real interest rate of 0.05 clear the asset market? reserve-deposit ratio = 23 (round to two decimal places) money multiplier = 2.13 (round to two decimal places) money supply = 128 (round to the nearest whole number) Y = 214 (round to the nearest whole number) c. Suppose that the reserve-deposit ratio is fixed at the value you found when r=i = 0.10 and isn't affected by interest rates. If r=i = 0.05, for what output, Y, does the asset market clear in this case? Y = (round to the nearest whole number)