Please help me answer section 8 in this picture. I have circled A,B,C,D,E.

FORODWAITH [a) Sam Gamgee, who bought the old mill from Ted Sandyman, is spending $500 on new equipment this year. The old equipment worth $400 had been just torn down by a mob of hobbits. What is the Shire's net investment? Show your work. b) Draw a graph of the Middle Earth loanable funds market in equilibrium. Be sure to label correctly. Gorthmog is planning to invest in developing Mount Doom as a source of energy for Middle Earth. He is informed by the Orc Union that they will not work in the future without being paid so his expected costs will increase. What happens to his expected profit? Draw what happens in the loanable funds market. What MORDOR happens to the real interest rate? Explain the dynamics of exactly how the change in expected future costs feeds through to the loanable funds market. KHAND NEAR HARAD With the return of the king, Osgiliath is being restored to its ormer glory. Such a level of spending causes a budget deficit in Gondor. Draw what happens in the loanable funds market. Welcome to Macroeconomics in Middle Earth! Part 2* Section 8 Moria's exports increase so that net exports are positive. What will happen to the demand and The market for loanable funds in Middle Earth finances supply for loanable funds and the real interest rate in Moria? Draw and explain precisely how this investment in capital goods like new sawmills in the Shire, new works bridges in Moria and Gimli's development of the Glittering Caves of Aglarond located behind the Deeping Wall of Helm's Deep. Immeasurable halls, filled with an everlasting music of water that tinkles into pools, as fair as Kheled- Bank with Zaram in the starlight" Page 1 of 15 5/23/2018 Page 2 of 15 5/23/2018 "Quotes from The Lord of the Rings, or The Hobbit by JRR Tolkien. Nothing written in italics applies to the .Quotes from The Lord of the Rings. or The Hobbit by JRR Tolkien. Nothing written in questions-it's there just for Tolkien fun. Go forth and read!!! italics applies to the questions-it's there just for Tolkien fun. Go forth and read! 10:35 AM 2021