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Q2. Do as directed. 1. Interpret the following function and its comprising components: Y K* = B (r+p)?! 2. Let us suppose, a company has 1 million outstandi ig shares of stock, each valued at 25$. Let us also suppose that the replacement cost of its physical capital stock is 18 million $. a. Should this firm invest in more physical capital? b. Would your answer in part (a) change, if the replacer ent cost of its physical capital stock changes to 28 million $? 3. Can inflation targeting serve as a substitute of rules? f yes, demonstrate through an example. 4. How can inflation create revenues for the governmer, exemplify the dynamics of this process