1. Problem 4.2
Md = $Y(.35-i) where $Y = $60,000 per year and wealth = $50,000, split between M and B
Md and Bd when i =.05? When i = .10?
How do Md and Bd change when i changes?
(ΔMd/Md) / (Δ$Y/$Y) when (Δ$Y/$Y) = -50% & i .10?
(ΔMd/Md) / (Δ$Y/$Y) when (Δ$Y/$Y) = -50% & i .05?
How does income elasticity of money demand depend on the interest rate?
Confirm algebraically.

2. Problem 4.6 Md = $Y(.8-4i) where $Y = $5 Tril. per year Hs = $100 bil.
c = Cu/D = 0 and Θ = R/D = .1
Hd = ?
i = ?
Ms = ?
Δ Hs = + $200 bil.  i = ?
Ms = $3,000 bil.  i = ?