1.5 Use the 2020 Monetary data from the School of Monetary from the University of the LOVE to answer the following questions(figure5):

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a.Calculate M1. (2 Marks)

b.Calculate M2. (2 Marks)

c. Use the theory of the quantity theory of money to calculate the real GDP for the LOVE Republic. (2 Marks)

d.Calculate and interpret the money multiplier for the LOVE Republic (3 Marks)

NB: Figure 5 and figure 5(continued) forms 1 tabled. all questions are based on the attached table and the attachments are referenced to my homework paper

Consumer credit card outstanding balances $15 millions Estimated velocity of circulation 150 times a year Estimated quantity of money $20 millions Price index at year 2020 125 Estimated currency drain ratio 0.25 Estimated desired reserve ratio 0.15Figure 5: 2020 Monetary data from the School of Monetary, University of the LOVE Monetary item Values Notes and coins in circulation $5 millions All the notes and coins issued by the central bank $7 millions Demand deposits $12 millions Short-term deposits (less than 6 months) $20 millions Long-term deposits (more than 6 months) $36 millions