Chrome File Edit View History B Bookmarks Profiles Tab Window Help 100% [27 Tue 11:50 Q DE X X E ? D 2 2 : S C 1. * 2 * M * 2 * 2 * E * C G D I | Q G D G D C T G If G cl C C C 1. Gh + F C d21.ucalgary.ca/d21/le/content/400818/viewContent/4935221/View Update Apps F CLEANSERS / SC... Body Scrub | Luxu... M Body scrubs and... Desserts Archives... B Recipes | Buttern... T The Best Soft And... G poulet deje - Goo.. Reading List 2. The money demand depends positively on output (Y) and negatively on nominal interest rate (i) : MD ( *, i ). The money supply is given by MS = mH, where H is the stock of high-powered money and m is the money mul- tiplier. The money multiplier is given by 1 m = c+ (1 - c)0 0+ (1 - 0) c' where c E (0, 1) is the currency ratio and 0 E (0, 1) is the reserve ratio. In this economy, the currency ratio is negatively related to the nominal interest rate: i 3 14 " > > 9 12 "tv 4