Please I really need help with this Economics homework

1. Debtors

	A.	benefit from inflation because interest rates rise.
	B.	There is not enough information to answer the question.
	C.	are hurt by inflation because taxes fall.
	D.	are hurt by inflation because their purchasing power drops.
	E.	benefit from inflation because theyrepay indevalued dollars.

2. Suppose the marginal propensity to consume is 0.99, then the spending multiplier is equal to:

	A.	400
	B.	200
	C.	300
	D.	100

3. Suppose the market basket of goods and services cost $3,500 in 1996 but today costs $4,250. Using today as the base, the consumer price index1996 is:

	A.	120.0.
	B.	79.6.
	C.	Answer not given.
	D.	121.4.
	E.	82.4.

4. Scenario: Market Basket Suppose a market basket consists of the following goods: 50 pens, 25 notepads, and 25 paperclips. Also assume the price per unit of these goods is as follows for the years noted and 2010 is the base year.

	Price in 2010	Price in 2011
Pens	$0.25	$0.30
Notepads	0.30	0.45
Paperclips	0.12	0.15

Reference: Ref 11-14

(Scenario: Market Basket) What is the rate of inflation between 2010 and 2011?

	A.	30.44%
	B.	22.2%
	C.	13.7%
	D.	-14.54%
	E.	25.64%

5. If the reserve requirement is 4% and a bank initially receives $10,000 in deposits from the Fed, then the maximum amount of money that the banking system can create is:

	A.	$400,000
	B.	$1,600,000
	C.	$150,000
	D.	$250,000