Please help me answer the following questions. Thank you

Question 3

The options in the scroll down menu are:

• Bond price and interest rate are inversely related
• Bond price and interest rate are directly related
• Bond price and interest rate are not related
• There is insufficient data to make a generalization

Suppose the price level and value of the dollar in year 1 are 1 and $1, respectively. 13 Instructions: Round your answers to two decimal places. a. If the price level rises to 1.20 in year 2, what is the new value of the dollar? 10 $ points Skipped b. If instead the price level had fallen to 0.65, what would have been the value of the dollar? c. What generalization can you draw from your answers? eBook O The amount a dollar will buy varies inversely with the price level. Print O The amount a dollar will buy varies directly with the price level. O The price level has no effect on the amount a dollar will buy.Assume Canada is experiencing an 8 percent annual rate of inflation and is also incurring a trade deficit. All else equal, the use of appropriate monetary policy to reduce inflation would: 15 Multiple Choice 10 points Skipped O cause the dollar to depreciate in value. eBook O have no impact on our trade deficit. Print References O increase our trade deficit. O decrease our trade deficit.17 10 points Skipped Assume that the following data characterize the hypothetical economy of Trance: money supply = $180 billion; quantity of money demanded for transactions = $140 billion; quantity of money demanded as an asset = $10 billion at 12 percent interest, increasing by $10 billion for each 2percentagepoint fall in the 'nterest rate. a. What is the equilibrium interest rate in Trance? 96 b. At the equilibrium interest rate, what are the quantity of money supplied, the total quantity of money demanded, the amount of money demanded for transactions, and the amount of money demanded as an asset in Trance? Instructions: Enter only whole numbers for your answers below. Quantity of money supplied = $ Quantity of money demanded = $ Amount of money demanded to t ansactions = $ Amount of money demanded as an asset = $ Refer to the graph below, in which Dt is the transactions demand for money, Dm is the total demand for money, and Sm is the supply of money. If the market for money is in equilibrium at a 6 percent rate of interest 21 and the money supply increases, then Sm2 will shift to: 10 points 8 Skipped Rate of interest 6 A Book 0 Print Quantity of money References Multiple Choice O Sm3 and the interest rate will be 8 percent. O Smi and the interest rate will be 8 percent. O Sm1 and the interest rate will be 4 percent. O Sm3 and the interest rate will be 4 percent.24 Assume that the desired reserve ratio for the chartered banks is 25 percent. If Bank of Canada buys $3 billion in government securities from chartered banks we can say that, as a result of this transaction, the lending ability of the chartered banking system will: 10 Multiple Choice points Skipped O decrease by $9 billion. eBook Print O increase by $15 billion. References O increase by $12 billion. O increase by $9 billion.3 Suppose a bond with no expiration date has a face value of $10,000 and annually pays a fixed amount of interest of $700. Compute and enter in the spaces provided in the table below either the interest rate that the bond would yield to a bond buyer at each ofthe bond prices listed or the bond price at each of the interest yields shown. Instructions: For bond prices, round to the nearest dollar. For interest rate, round your answer up to two decimal places. 10 points Interest rat=(s) as 3""3'\" mt Print What generalizaJon can be drawn from the completed table? References (Click to select) v