NEED HELP ASAP!

1.

Various monetary policy rules have been proposed over the years. A. What is a monetary policy rule? (2 points) B. What is the purpose of a monetary policy rule? (2 points) C. What was the monetary policy rule proposed by Milton Friedman? Using the quantity theory of money, provide an example of how it would work. (4 points) D. What is the equation of the Taylor rule? Explain how the Taylor rule works. Using Taylor's values for ( and /), and assuming the natural rate of interest is 1%, at what level should the central bank set the nominal interest rate according to the Taylor rule if inflation is currently 4.7%, the target inflation rate set by the central bank is 2%, and actual output is 5% below potential GDP? (10 points)