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Suppose table 1 , below, shows the potential investment opportunities in an economy. Vse this intoremation to complete table 2 . a ) Determine the

Suppose table 1, below, shows the potential investment opportunities in an economy. Vse this intoremation to complete table 2.
a) Determine the market rate of interest. How much lending will woor?(So povints) Mest shew work in tables to receive ANX credit?
b) Why would the market rate of interest not ocoor at 3%?1Explain why. (20 points)
e) If interest rates are ABOVE the equitibriom rate, then at this 171 e) interest reate the supply of fands is relatively (High, Low) and at this RTGt interest rate the domand tor fonds is relatively (High, Low)q,, therefore, a (Shortage, Sumplos) ot tonds wists and interest rates will be forced q,(higher, lower, Temain onchanger) bootuse q, points)
d) Explain why MORE funds are demanded when interest rates FAL. (10 points)
Table 1
\table[[Project,\table[[Rate of],[Return]],\table[[Project],[Cost]]],[A,10%,$50
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