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QUESTION 1 pointsutra Credit Indicate the specific effect on create decrease no change to each of their considered to be independent of the other D) You take the $2.500 out of the shoe box in your des and to pay off your car loan with the bank M b) Higher market tartales cause the pace me 512 the checking out the stat dipost counts Decreased default is causes and there an increase in the land is yout M d) The Federal Reserve purchases US Treasurements An individual in the lined States neceves 25.000 cash (n5700 ron Mandela lecently opening Togettogs across the border to Mexica luhe Unted States. Shpesh hech has serving out You redeema personal and depot the landscheiding Given the following 4 scenarios: Answer BOTH parts a & b below. 1. The contract interest rate was 4.0% and the expected inflation rate was 2.0%. 2. The contract interest rate was 6.5% and the expected inflation rate was 2.5% 3. The contract interest rate was 8.0% and the expected inflation rate was 5.096 4. The contract interest rate was 9 596 and the expected inflation rate was 6.25% a) Indicate which scenario would have been best for the lender and explain why it is best for the lender by With an ex post actual inflation rate of 30% indicate which scenario would have been best for society and explain why it is best for society

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