PLEASE HELP!!Consider the following IS-LM model with a banking system:Consumption: C = 7 + 0:6YDInvestment: I = 0:205Y iGovernment expenditure: G = 10Taxes: T = 10Money demand: Md/P=Y/iDemand for reserves:Rd = 0:375DdDemand for deposits:Dd = (1 0:2)MdDemand for currency:CUd = 0:2MdThis says that consumers hold 20% (c = 0:2) of their money as currency and the required reserveratio is 37.5% ( = 0:375). Demand for central bank money (Hd) is the total amount of currencybeing demanded plus the total demand for reserves. Suppose the price level is P = 1 and that theinitial supply of central bank money is $100.1. Solve for the money multiplier. Explain your work.2. Solve for equilibrium output and the equilibrium interest rate at the initial supply of centralbank money (ie. $100).3. Suppose that the central bank sells $80 worth of bonds using open market operations. Solvefor the new equilibrium output.3Econ 301 – HW 24. Solve for the the new equilibrium interest rate after the open market operations and use anIS-LM graph to explain what happened.