2. During the late nineteenth century in the United States, many farmers borrowed heavily to buy land. During most of the period between 1870 and the mid18905, the United States experienced mild deation. Many farmers engaged in political protests during these years and deation was often a subject of their protests. To understand why deation was the subject of their protests, answer the following questions: a. Suppose a farmer borrowed $1000 for one year at an interest rate of 8%. At the time that the money was borrowed, the price of a bushel of corn was $0.40. The farmer expected that the price of corn would rise 5% over the course of the loan. In terms of corn, how much did the farmer borrow? How much did the farmer expect to pay back in terms of corn? What is the expected real interest rate on the loan? b. With the money borrowed, suppose the farmer bought some land. He expected that the land would yield 2700 bushels of corn. Given his initial expectation about what would happen to corn prices, was it a good decision to borrow the money? c. Suppose the farmer was able to grow 2700 bushels of corn on the extra land that he bought with the borrowed money. Suppose that the price of corn was $0.39 per bushel at the time that the loan was called. Given the actual change in corn prices, explain why the farmer felt burdened by deation