Use the table below to answer the questions. 
(a) If the transactions demand for money equals 10% of nominal GDP, nominal GDP is $600 billion, and the money supply is $360 billion, what is the equilibrium interest rate?
(b) If nominal GDP remains constant, and the money supply is increased from $360 to $460 billion, what will the equilibrium rate of interest be?
Definitions:
Shareholders
Individuals or entities that legally own one or more shares of stock in a joint-stock company.
Cash Dividend
A payment made by a company out of its earnings to its shareholders, usually in the form of cash.
Information Content Effect
Refers to how a company's stock price reacts to the announcement of financial information, indicating the market's response based on the news' perceived value.
Dividend Payout
Dividend Payout refers to the proportion of earnings that a company distributes to its shareholders as dividends.
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