Suppose that wealth is $5trn and can be in money and bonds only. Suppose that yearly income is $1.5trn. Also, suppose that money demand function is given by Md = $Y (.8 - 2i) a. What is the demand for money and the demand for bonds when the interest rate is 2% (i=0.02)? 4% (i=0.04)? b. Describe the effect of the interest rate on money demand and bond demand. Explain. c. In percentage terms, what happens to the demand for money if yearly income is reduced by 10%? d. Now suppose that the supply of money is $1trn. Assume equilibrium in financial markets. Calculate the equilibrium interest rate. e. If the Reserve Bank of Australia wants to decrease i to 0% at what level should it set the supply of money? How does it do that?