4. A market basket consists of 3 goods: A, B, and C. The table below lists their quantities in the basket and their prices in 2012, 2013 and 2014. Good Quantity 2012 price 2013 price 2014 price A 200 $10 $11 $12 B 100 $30 $32 $34 C 300 $12 $13 $15 (a) Let 2013 be the base year. Complete the table below. Year Value of the market Price index Inflation rate basket 2012 X 2013 2014 (b) The table below shows the hourly nominal wage and the nominal interest rate from 2012 to 2014: Year Nominal Real Wage %A Nominal Real Interest Wage Interest Rate |Rate 2012 $10.00 X X 10% X 2013 $10.60 12% 2014 $11.50 14% (%A: percentage change) Complete the table above. (c) If lenders and borrowers use the inflation rate in 2013 as their prediction of inflation rate in 2014, will borrowers gain or lose in 2014? Why