Answer to Q2: I think there is problem with the expression.
The better way to answer this question is graph - money supply/demand graph. The money supply (M/P) is just vertical line, while the money demand curve is downslope concave curve, with X - quantity, and Y - interest rate.
With given GDP Y, the interest rate moves along the money demand curve when the money supply changes. When money supply increases, interest rate decreases (move down the curve); when money supply decreases, interest rate increases (move up the curve). Therefore, money supply must be greater than money demand when the market interest rate is lower than the equilibrium interest rate. That is the reason why I think the exprssion has problem.
Hope this helps.
