For each of the statement below, in two or three well-written sentences, could you explain succinctly and cogently why that statement is incorrect. Please focus specifically on what makes the statement wrong.

5. You receive $500 today which you plan to save for 2 years. Also, in two years, you will receive another $500. If the current interest rate is 5%, the present value of the payment of $500 today and the $500 payment in two years is...... $500 (1.05)2 + $500/(1.05). 6. Other things the same, an increase in the interest rate makes the quantity of loanable funds supplied rise. Investment spending also rises because of the higher interest rate companies can earn