Question: Can I get answer with explanations? . Suppose the money demand function is (M/P)d=800-50r, where r is the interest rate, as a percentage. The money

Can I get answer with explanations?

. Suppose the money demand function is (M/P)d=800-50r, where r is the interest rate, as a percentage. The money supply M is 2,000, and the price level P is fixed at 5. a. Graph the supply and demand for real money balances. b. What is the equilibrium interest rate? c. What happens to the equilibrium interest rate if the supply of money is reduced from 2,000 to 1,500? d. If the central bank wants the interest rate to be 4 percent, what money supply should it set

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