(A short paragraph-three or four sentences-will be sufficient.) (1) (10 POINTS) Why might you be willing to make a loan indirectly to your neighbor by putting funds in a savings account earning a 5 percent interest rate at the bank and having the bank lend her the funds at a 10 percent interest rate rather than directly lend her the funds yourself? Explain your answer briefly (2) (10 POINTS) Suppose you remove $1,000 from your checking account, put $800 into your savings account and hold $200 in cash. By how much has M1 increased or decreased, or has it remained the same? By how much has M2 increased or decreased, or has it remained the same? Explain your answer briefly. NOTE: I am looking for precise numerical answers for the changes in M1and M2. (3) (10 POINTS) If mortgage interest rates rise from 5 percent to 9 percent but the expected rate of inflation increases from 2 percent to 7 percent, are people more or less likely to buy houses? Explain your answer briefly