Consider an economy with a constant population in which people wish to hold bank checking deposits worth a total of 6,000 goods in every period. The economy has a total endowment of 15,000 goods in each period. There is a total stock of unintermediated capital of 2,000 goods in each period. Bank deposits are the only form of money in the economy. Deposits at banks are subject to a reserve requirement of 15%. The net real rate of return to capital is 8% per period. After meeting the reserve requirement, banks invest the remainder of all deposits into capital. The fiat money stock is $1,000 in every period. Calculate the values for the following variables:

a) The net real rate of return on deposits offered by competitive banks. Briefly explain each component.

b) The total nominal money stock "M1".

c) The money multiplier.

d) The capital stock. Briefly explain who holds capital.

e) Real GDP. Briefly explain each component of GDP.