3. As the central banking system of the United States, the Federal Reserve System (Fed) has three specific objectives for monetary policy: maximizing employment, stabilizing prices, and moderating long-term interest rates. Use the information given to finish the following questions. (1) The table includes real data of the money stock measures and their components in June 2020 (06/2020) and October 2021 (10/2021), which are obtained from the Federal Reserve. Use the model of money supply, fill the empty spots (values of the variables) in the table below. Also, use the data of 10/2021 to show step-by-step solutions for monetary base (B), total deposit (D), currency deposit ratio (cr), reserve deposit ratio (rr) and money multiplier (m) in October 2021. 06/2020 10/2021 Item Definition ($ as billion) ($ as billion) M Money supply (as M2 $) 18,175.7 21,187.1 C Currency (in circulation $) 1,958.3 2,202.9 R Reserve (balance $) 3,043.6 4, 128.1 B Monetary base ($) D Total deposit ($) cr Currency-deposit ratio rr Reserve-deposit ratio m Money multiplier (2) In March 2022, change of the consumer price index (CPI) piked at a new record high. As a response to the high inflation rate, the Federal Reserve approved its first interest rate hike since December 2018. Suppose, velocity of money stock (V) is constant. In the first quarter (Q1) 2022, CPI increased to 287.7 compared with the level of 280.1 in the last quarter (Q4) of 2021. If we know real GDP growth rate in 2022 Q1 is 1.5%, then how much will be nominal GDP growth rate in 2022 Q1? If the federal funds rate reached 1.9% in 2022 Q1, then how much will be the real interest rate in Q1? In practice, what the Federal Reserve should do to achieve the higher target federal funds rate