A friend has asked you to lend him some money for his business venture.Explain using the concept of real and nominal interest rate, how anticipated inflation plays an important part in you deciding on the rate of interest you should charge.

Reflect on an occasion where you or someone you know has been affected by unanticipated inflation

Tom, Jerry and Mary were discussing their job prospects over coffee in the GOSSIP CAF.

Tom told his mates that he has just resigned from his current job because he worked long hours and did not have enough time to spend with his kids. He said he is looking for a new job with normal hours and family friendly policies.

Mary joined in and said that since graduating she has not found a job because of a lack of jobs due to the economic slowdown.

To lighten the mood, Jerry told them things should get better as the unemployment rate decreased last month by 0.2 percent to 5.9 percent.Mary did not share Jerry's optimism because the participation rate also decreased.

Which type of unemployment best describes Tom and Mary situation.Explain.

Why is Mary not optimist about the fall in the unemployment rate