Scenario-based on Financial Innovation and Velocity. What are your thoughts on the below scenario:-

The following two scenarios concern money supply in the country of "Atlantis".

a. Looking at long-run averages, we see that "Atlantis'" growth in the money supply (M1) is 7% per year, output growth is 3% per year, and monetary (M1) velocity is stable (no change). What would you expect Atlantis' inflation rate to be (on average, per year)?

b. Atlantis implements financial deregulation. This deregulation allows banks to offer new deposit accounts with checking services. These accounts can be invested however the client wishes, and the client can write up to 10 checks per month on the account. These accounts are not included in M1 because they are officially savings, rather than checking, accounts. What effect do you think this deregulation would have on demand for accounts included in M1? What would happen to the velocity of M1?