Suppose That in Mysore,the Reserve-Deposit Ratio Is Res = 0

Multiple Choice

Suppose that in Mysore,the reserve-deposit ratio is res = 0.5 - 2i,
Where i is the nominal interest rate.The currency-deposit ratio is 0.2 and the monetary base equals 100.The real quantity of money demanded is given by the money demand function
L(Y,i) = 0.5Y - 10i,
Where Y is real output.Currently,the real interest rate is 5% and the economy expects an inflation rate of 5%.The money supply equals

A) 200.
B) 240.
C) 300.
D) 400.