Consider an economy similar to the one in the last week of class. Old bankers in the Central Island own $16,000,000 of fiat money and creditors are owed $20,000,000. 1. What is the short-term rate of interest if the Central Bank does not intervene? 2. How much will the bankers borrow if the Central Bank offers loans with a gross short-term interest rate of 1? 3. How much will the bankers borrow if the Central Bank offers loans with a gross short-term interest rate of 1.1?