Unexpected inflation causes the demand for money to and the interest rate to . 2. If the supply of money increased, the interest rate will and investment will . True or False 3. When the interest rate is high, the opportunity cost of holding money increases so the quantity of money demanded will decrease. 4. The money supply includes all assets like cash, demand deposits, bonds, and real estate. 5. Monetary policy is when the central banks changes the interest rates by changing the money supply

After graduation, you plan to work for dynamo corporation for 12 years and then start your own business. you expect to save and deposit $7,500 a year for the first 6 years (t = 1 through t = 6) and $15,000 annually for the following 6 years (t = 7 through t = 12). the first deposit will be made a year from today. in addition, your grandfather just gave you a $32,500 graduation gift which you will deposit immediately (t = 0). if the account earns 9% compounded annually, how much will you have when you start your business 12 years from now?