Answer the questions with GRAPHS. please

1. Expected inflation is e = 0.03 (3 percent) and the nominal interest rate is it = 0.06 (6 percent). What is the expected real rate of interest? Actual inflation turns out to be 5 percent. What is the real rate of interest? Who benefits/loses in this example?

2. Assume a closed economy with flexible prices. Income y increases. Determine the impact on the equilibrium price level p and the expected real rate of interest using the credit market and the money market. What happens to velocity?

3. When there is an increase in the perceived riskiness of interest-bearing assets, there is typically a substitution towards money (currency and FDIC-insured accounts). This is sometimes called a flight to safety. You can model this by assuming the demand for real balances increases. Assume a closed economy with flexible prices. Determine the impact on the equilibrium expected real rate of interest and the price level. What happens to velocity?

4. Assume a closed economy. The money supply increases. Determine the equilibrium impact on the expected real rate of interest and the price level for two cases: fixed price and flexible price.