a)How does a sale of government bonds by the central bank affect the money supply, the nominal interest rate, and economic activity? b)Suppose that the actual inflation rate is 2%the expected rate is 3%, and the nominal Interest rate is %. What is the expected real interest rato? Suppose in the rest of this exercise that the expected inflation rate is always equal to the actual inflation rate thanks to the tree avaltability of perfect information Furthermore , suppose that the velocity of money is constant and the expected real interest rate is 2%. c. the rate when the growth rate of money supply is 7% and the growth rate of real 3 %? What the expected inflation rate? What is the nominal interest rate ? Let the growth rate of money supply 7% to 5% without affecting the growth rate of real GDP or the velocity of money d. What happens to the actual Inflation rate? What happens to the nominal interest rate? Does the fall in the growth rate of money supply imply cause an increase or a decrease in the nominal interest rate ? e. What is the current monetary policy of the Bank of Canada ? Is your answer to the previous question consistent with the current monetary policy of the Bank of Canada ? your answer to the previous question consistent with your answer to the previous question a) above ? Why and why not