Question 1: Ination and Money Here is some data on the economy of a certain country. Use this data for all three parts of question 1. M1 Money Supply: $174 Billion Real GDP: $680 Billion Velocity of M1 Money Supply: 4.2 Queonla: Right now, what is the rate of inflation in that country? How can you tell? Type your answer and calculations here: Question lb: If they want to change the inflation rate to about 2% (which the Fed says is ideal). can they do so by changing the Money Supply? Assuming the velocity stays the same, about how much should the Money Supply change to get to the inflation rate to 2% Type your answer and calculations here: Question 2:_Monetary Policy Using the case given in question 1. what are some examples of action the Central Bank of that country could take to reduce the money supply? Explain how these examples would work. For this question. assume that the Central Bank of that country has tools for Monetary Policy similar to the tools used by the F.O.M.C. in the USA. (Before you answer, please read the previous sentence again.) You don't need specific numbers to answer this, just a clear and thorough explanation. Type your answer here: PageZ