1.Dimpy has $100 to put into a bank account. Dimpy expects that inflation will be 3%. If Dimpy wishes to achieve the real return of 7% , she should expect an interest payment on that account the amount of per month (assume all percents are monthly):

Select one:

a.$7

b.$100

c.$10.

d.$3

2.In an open economy, GDP is $4 billion this year. Consumption is $1.5 billion, and government spending is $0.5 billion. Taxes are $0.5 billion. Exports are $0.5 billion, and imports are $0.25 billion. How much is the net capital inflow?

Select one:

a.$2 billion

b.$1 billion

c.-$ 0.25 billion

d.$0.5 brillion

3.In the market for loanable funds, there is a demand and supply of loanable funds represent as the following equations:

Demand: r =8.2 - 0.003Q Supply: r = 0.002Q

Suppose that the interest rate is 6.28%, calculate the shortage or surplus of funds in the market. You only need to provide the number.