1. Calculate the rate of inflation for a particular year, for example, the year 2021? Answer the question using a numerical example. Note: Apply CPI (Consumer Price Index) to estimate inflation.

2. Suppose you are a loan officer, and your target is to make a 4 % real interest income for the bank. How much interest rate should you charge your customer so that you can make 4% real interest income for the bank? Assume the rate of inflation in the country is 3%. Discuss the answer (How and why?)

3. When the demand for loanable funds rises by the producers, the rate of interest will rise in the loanable market. Discuss the answer using an appropriate diagram.

4. Define APC (average propensity to consume) and MPC (marginal propensity to consume) using a numerical example.