Question: Need help. Suppose that money demand is given by: M = $Y(D.25 - i) As long as interest rates are positive. This question refers to

Need help.

Need help. Suppose that money demand is given by: M\" = $Y(D.25

Suppose that money demand is given by: M\" = $Y(D.25 - i) As long as interest rates are positive. This question refers to the situation where the interest rate 13 Rm. :1. What is the demand for money when interest rates are zero and $Y=8m b. If $Y=8'D. what is the smallest value of the money supply at which the interest rate is zero? c. Once the interest rate is zero. can the metal bank continue to increase the money supply? Why or why not

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