Question 1 [5 points) Consider the Quantity Equation where VM=PY. Assume the V is constant and that the Fed decides to increase M at a steady 3% per year regardless of circumstance and that Y\" has a steady growth rate of 2%. Assume no lags. Do you anticipate inflation to increase. decrease, or stay the same. :1 Question 2 {5 points) What is the major reason why the quantity equation of money is not practical. Make sure to say why this is so. [at Question 3 (5 points) Suppose that country A and country B haye the same rate of money growth, and velocity is constant in both. Output growth is lower in country A. Which country has higher inflation? Explain why in a couple of sentences. [:t