(e) Use the money growth rule to determine M1, the money supply at time 1. (f) Show that if this rule is followed, P1 = Po as Friedman predicts. (g) Use Friedman's rule to determine M10o. (h) What will Ploo be?2. The following problem illustrates Milton Friedman's money growth rule which is a center piece of the Monetarist thinking of macroeconomics. Suppose the economy is given by the following: Technology: Y = 10K,3(1;).7. Consumption Function: C = .7K. Depreciation rate: 10% (i.e. d = .10). Population growth: 1% (i.en = .01). Technological growth: 1% (i.e g = .02). 2. Money demand: L; = 3. In addition suppose that L; = Lo = 10, Mo = 10, 000 and Ko is such that the economy is at the steady state. (Note, don't confuse the different notational uses for L.)