10-point question Answer the 2 following independent questi…
10-point question Answer the 2 following independent questions. Since it is not possible to draw the graphs in BB, just fill in the appropriate answer in each space ______. I would suggest drawing the graphs on your scratch paper to help you answer these questions. a. Using the loanable model, indicate the impact on i and q if the pandemic causes inflations expectations to fall from 2% to 1%. For each of the following use inc (for increase), dec (for decrease), no (for no change), ? (for ambiguous/unknown). S ___: i ___ q ___ D ___: i ___ q ___ ——————————– Net change: i ___ q ___ b. Using the bond supply/bond demand model indicate the impact on i and q if an increase in regulations increases the transactions costs for borrowers and lenders. For each of the following use inc (for increase),dec (for decrease), no (for no change), ? (for ambiguous/unknown). S ___: i ___ q ___ D ___: i ___ q ___ ——————————– Net change: i ___ q ___