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Question: suppose that money demand is given by where sy is...

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Suppose that money demand is given by where SY is $250 and i denotes the interest rate in decimal form. Also, suppose that the supply of money is $50 Calculate the equilibrium interest rate as a percent. The equilibrium interest rate is %. Round your response to two decimal places. If the Federal Reserve wants to increase the interest rate by 5 percentage points (0.05 in decimal form) over and above the equilibrium interest rate determined above, at what level should it set the money supply? The money supply should be set at s .(Round your response to one decimal place.)

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