Janet Yellen is chair of the Federal Reserve. The US is growing at four percent per year (0.04). Europe is growing at two percent per year (0.02). Europe is increasing its money supply by five percent per year (0.05). Answer the following questions using the model of price level targeting developed in class. Suppose Janet wishes have US inflation at zero. What money supply growth rate should she authorize?

a)0.02

b)0.04

c)0.25

d)0.08