Is it possible for the rate of inflation to exceed the rate of money supply growth?If the rise in inflation is fully anticipated, use appropriate diagrams and/or equations to assess the overall impact on the real rate of interest.What would this rise in expected inflation likely imply for the interest rate differential between Treasuries and foreign government bonds?What additional assumption(s) would you have to make in order to be sure of the overall effect?Finally, could Federal Reserve attempts to keep interest rates low be boosting inflation expectations today?Why or why not?

Using equations and/or diagrams if appropriate, briefly account for each of the following:

a) the extension of interest rate ceilings to S&Ls after the 1966 credit crunch

b)Alan Greenspan's role in the 1994 bankruptcy of Orange County

c) profiting from the elimination of the interest rate differential between Treasuries and

munis in 1998 and 2008

d) Ben Bernanke's scope for offsetting the effects of the pre-2007 savings "glut"

e) using call options to hedge your exposure to Tesla in 2020