A) assume you just deposited GHc 1,000 into a bank account. the current real interest rate is 2% and inflation is expected to be 6% over the next year Required 1) what nominal interest rate would you require from the bank over the next year?

2) how much money will you have at the end of one year?

3) if you are saving to buy a stereo that currently sells for GHc 1,050, will you have enough to buy it?

B) Explain five (5) factors that cause the supply curve of loanable funds to shift