1. Financial Markets a) Explain carefully how the household sector participates as both a borrower and lender of funds in all possible financial markets. b) If I can buy a car today for $9,000 and it is worth $17,800 in extra income next year to me because it enables me to get a job as a traveling circus performer, should I take out a loan from Lester the Loan Shark at a 90% interest rate if no one else will give me a loan? Will I be better or worse off as a result of taking out this loan? Based on your answer here, as well as discussions with your group, should loan sharking be legal