3. Answer the following questions with the help of graphs: a. If interest rates are expected to continue to decrease in the foreseeable future, what should happen to interest rates today? b. If expected inflation decreases, how would interest rates be affected?

just answer part c , d and e notice that you can do it without the answer of part a and b

a. Examine the fundamental causes of a nation’s business cycle fluctuations. Also, examine the relationship between total spending by government and consumers in a nation and the location of the countries’ GDP on the business cycle.   b. 1. Suppose you have $200,000 in a bank term account. You earn 5% interest per annum from this account.You anticipate that the inflation rate will be 4% during the year. However, the actual inflation rate for the year is 6%.Calculate the impact of inflation on the bank term deposit you have and examine the effects of inflation in your city of residence with attention to food and accommodation expenses. 2. The Australian Bureau of Statistics (ABS) reported in May 2017 that the civilian population in Australia over 15 years of age was 20.8 million.Of this population of 20.8 million Australians, 13.5 million were employed and 0.7 million were unemployed.Calculate Australia’s labor force and the number of people in the civilian population who were not in…

Assume the expected rate of inflation is 3 percent per year.  What nominal interest rate should you charge to receive a real interest rate of 2 percent per year?