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1. Michael is an Internet service provider. On December 31, 2020, he bought an existing business with servers and a building worth $400,000. During 2021,

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1. Michael is an Internet service provider. On December 31, 2020, he bought an existing business with servers and a building worth $400,000. During 2021, his business grew and he bought new servers for $500,000. The market value of some of his older servers fell by $100,000. a. What was Michael's gross investment, depreciation, and net investment during 2021? b. What is the value of Michael 's capital at the end of 2021'? 2. The table sets out data for an economy when the government's budget is balanced. Loanable funds Loanable funds Real interest rate demand\"! supplied cent at trillions of 2021 dollars 4 8.5 5 .5 5 8.0 6.0 6 7.5 6.5 7 7.0 2.0 8 6.5 '15 9 6.0 8.0 l 0' 5 . 5 8 .5 Calculate the equilibrium real interest rate, investment, and private saving. b. If planned saving increases by $0.5 trillion at each real interest rate, explain the change in the real interest rate. c. prlanned investment increases by $1 trillion at each real interest rate, explain the change in the real interest rate

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