Consider an economy with a constant population in which people wish to hold bank checking deposits worth a total of 5,000 goods in every period. The economy has a total endowment of 10,000 goods in each period. There is a total stock of unintermediated capital of 1,000 goods in each period. Bank deposits are the only form of money in the economy. Deposits at banks are subject to a reserve requirement of 20 percent. The real rate of return on capital is x = 1.10 per period. After meeting the reserve requirement, banks invest the remainder of all deposits into capital. Individuals do not hold capital. The fiat money stock (monetary base) is $2,000 in every period. Calculate the following variables:~ 1. What amount would a a bank choose to borrow if the Central Bank interest rate is less than x?~ 2. Would your last answer change if capital exhibits diminishing marginal returns?~