1. Define money and list the three functions of money? 2. In a graph, show how the monetary policy affects the currency appreciation of depreciation, net exports, investment, and net capital outflows? Y - 3. Suppose that the real money supply Myp-100 and the money demand is M/ P 200R If the interest rate (R) equals 0.10, find the equilibrium output (Y)? 4. If the growth rate in money supply is -2% and the growth rate in money demand is 1%. Find the inflation rate? 5. Suppose that the consumer price index P=120, the annual growth rate in money demand is 3%, and the annual change in money supply is 400 dollars. If the current money supply is 5,000 dollars. Find the change in consumer price index (AP)? 6. If the price of a car in the US is 8,000 S, and in Japan the same car costs 870,000 Japanese yen . Find the exchange rate under the purchasing power party (PPP)? That is you need to find how many U.S. dollars can be purchased in one Japanese yen and vice versa