1. Darla takes out a one-year loan from a bank. Because Darla's credit is perfect, she knows that she'll be able to borrow at a real interest rate of 2 percent.

If the interest rate quoted on Darla's loan contract is 6 percent, then it's a safe guess that

the bank is engaging in suspect and possibly criminal activity

the supply of loanable funds curve has shifted leftward

the bank predicts that Darla's credit score will fall in the near future

the bank predicts that inflation will be four percent over the loan period

2. Using information from our lectures, which of the following would most likely help with the current inflation problem in the USA?

Group of answer choices

more incentives for people to go into trucking as a career

easy money policy to increase the money supply

more restrictions on imports (international trade)

more incentives to make people want to spend more at stores and restaurants

3. For the next four questions, please consider a closed economy with the following information:

Government purchases = $1000 Transfer payments = $0 (none in this economy) Net taxes = $1200 Output (income) = $6000 Consumption = $3500

Calculate this economy's public savings, carefully following all numeric instructions.

4. Again, please consider a closed economy with the following information:

Government purchases = $1000 Transfer payments = $0 (none in this economy) Net taxes = $1200 Output (income) = $6000 Consumption = $3500

Calculate this economy's private savings, carefully following all numeric instructions.

5. Again, please consider a closed economy with the following information:

Government purchases = $1000 Transfer payments = $0 (none in this economy) Net taxes = $1200 Output (income) = $6000 Consumption = $3500

Calculate this economy's economic investment, carefully following all numeric instructions.