Question 2. Alboxia is a (hypothetical) country that has recently adopted negative interest rates. There is one Central bank, let us call it ABC (Alboxian Banque Centrale), there are 4 financial institutions in Alboxia, let us call them A, B, C, and D, and there are 100 people in Alboxia, let us call them 1, 2, 3, ..., 99, and 100. Now answer the following questions below about the Alboxian economy: - (2a) Once negative interest rates are announced, who pays interest rate to whom? State your answer in terms of ABC, A, B, C, and D, and 1, 2, 3, etc. For example "blank pays interest to "blank." (3) - (b) The Alboxian government claimed, at the time the negative rates were announced, that this would help the economy. Explain, in terms of the entities ABC, A, B, C, and D, and 1, 2, 3, etc. what is expected to happen to each of them in a negative interest rate economy. Once you outline what will happen to each, show either that the government announcement is correct (as in 1, 2, 3 ... may benefit from the negative interest rate) or incorrect (as in 1, 2, 3 ... may not benefit from the negative interest rate). Question 2. Alboxia is a (hypothetical) country that has recently adopted negative interest rates. There is one Central bank, let us call it ABC (Alboxian Banque Centrale), there are 4 financial institutions in Alboxia, let us call them A, B, C, and D, and there are 100 people in Alboxia, let us call them 1, 2, 3, ..., 99, and 100. Now answer the following questions below about the Alboxian economy: - (2a) Once negative interest rates are announced, who pays interest rate to whom? State your answer in terms of ABC, A, B, C, and D, and 1, 2, 3, etc. For example "blank pays interest to "blank." (3) - (b) The Alboxian government claimed, at the time the negative rates were announced, that this would help the economy. Explain, in terms of the entities ABC, A, B, C, and D, and 1, 2, 3, etc. what is expected to happen to each of them in a negative interest rate economy. Once you outline what will happen to each, show either that the government announcement is correct (as in 1, 2, 3 ... may benefit from the negative interest rate) or incorrect (as in 1, 2, 3 ... may not benefit from the negative interest rate)