Suppose the economywide demand for money is given by: M = P(0.3Y − 25,000i). The price level P equals 3, and real output Y equals 8,000. a. At what value should the Fed set the nominal money supply if...

Suppose the economywide demand for money is given by: M = P(0.3Y − 25,000i). The price level P equals 3, and real output Y equals 8,000.

a. At what value should the Fed set the nominal money supply if it wants to set the nominal interest rate at 2 percent?

The nominal money supply should be set at $ .

b. At what value should the Fed set the nominal money supply if it wants to set the nominal interest rate at 3 percent?

The nominal money supply should be set at $ .