Suppose that the Fed's inflation target is 2%, potential output growth is 3.5%, and velocity is a function of how much the interest rate differs from 5%: %^V= 0.5 X (i-5). Suppose that a model of the economy suggests that the real interest rate is determined by the equation r= 8.35-%^Y where Y is the level of output, so %^Y is the growth rate of output. Suppose that people expect the Fed to hit its inflation target

In the short run, if ouput is just 2 percent for two years and the equation determining the real intgerest rate changes to r = 4.5 - %^Y, what money growth rte should the FED aim for to hit its inflation target in that period?