1. Ellie and Vince are trying to decide whether to purchase a new home. The house they want is priced at $200,000. Annual expenses equal 4% of the home's value. The real interest rate in the economy is 6%, and Ellie and Vince can qualify to borrow the full amount of the purchase price (for simplicity, assume no down payment). If Ellie and Vince are able to pay $1,500 monthly rent to live in a house of the same quality, should they buy or rent? (Note: This is not a debate on the pros/cons of owning vs renting.) 2. What are the three functions of money? 3. The money supply is 1,250, of which 250 is currency held by the public. Bank reserves are 100. Find the desired reserve-deposit ratio. Please answer these three questions above