Suppose the Fed targets for an inflation of 2%. She projects an economic growth rate of 3%. The current real interest rate is 4%. a. Suggest the long-run money supply growth rate for the Fed. Briefly explain your answer. State the necessary assumption in your analysis. [5 marks] b. What should be the corresponding targeted federal fund rate? Briefly explain your answer. [5 marks] c. If the current market federal fund rate is 4%, how can the Fed achieve the corresponding target federal fund rate in part b) through the open market operation? Explain. [5 marks]