13. Suppose you just learned that the govern¬ ment plans to print more money to finance the federal budget deficit.

(a) . How would this action affect your es¬ timate of expected inflation? Why?

(b) . How would this action affect the in¬ flation premium you would charge on a loan? Why?

(c) . How would this action affect the nominal interest rate you would charge on a loan? Why?