Hi. I'm working on a Macroeconomic Theory course. I hope you can help me answer this question, with steps please. Thank you.

Question 1. Suppose that the money demand function has the Cagan form. That is Mf P l' = 1401f.\" exp(air), where A0 :> 0,9> O, and a > 0. Assume that the Fisher equation holds. (In deriving your answers you should feel free to simplify by normalizing constants appropriately.) A.) Suppose that Y is constant and that the real interest rate is constant. Let inI E lan and let P: alnB. Suppose that m! follows and ARC) process. That is, mm' = 10mm; + 8H1 where lpml