In this Section there are 3 questions (10 points per question), to be answered in a concise and correct way. Use your calculator and show all details. 1. In country Z the quantity of money in the year 2019 was equal to 400 billion euro, In the same year the ratio of money held in currency (c) and the ratio of reserves/deposits (e) took on the following values: c = 0,3 and e = 0,2. Consider the required reserve ratio equal to O. (a) What is the money multiplier? (b) Compute the central bank monetary base in 2019. 2. An individual in UK wants to buy 10 shares in Frankfurt stock exchange. Each share of that fund costs 100EUR. How many British pounds will he need to make that investment if 1 GBP=1,30 USD and 1 EUR=1,10 USD? 3. What does the Taylor rule imply that policymakers should do to the fed funds rate if a decrease in money supply causes the inflation rate to decrease by 1% and output to rise by 1%