Suppose the economywide demand for money is given by: M= P(0.2Y-25,000). The price level Pequals 3,...

 

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Suppose the economywide demand for money is given by: M= P(0.2Y-25,000). The price level Pequals 3, and real output Yequals 10,000. a. At what value should the Fed set the nominal money supply if it wants to set the nominal interest rate at 2 percent? The nominal money supply should be set at $| b. At what value should the Fed set the nominal money supply if it wants to set the nominal interest rate at 3 percent? The nominal money supply should be set at $ Suppose the economywide demand for money is given by: M= P(0.2Y-25,000). The price level Pequals 3, and real output Yequals 10,000. a. At what value should the Fed set the nominal money supply if it wants to set the nominal interest rate at 2 percent? The nominal money supply should be set at $| b. At what value should the Fed set the nominal money supply if it wants to set the nominal interest rate at 3 percent? The nominal money supply should be set at $