2 . Consider the accompanying figure Nominal interest rate , Demand for loanable funds at 10% expected inflation Supply of loanable funds at 10%

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2 . Consider the accompanying figureNominalinterestrate ,Demand for loanable fundsat 10% expected inflationSupply of loanable fundsat 10% expected inflationSpoELO148Demand for loanable funds Supply of loanableDIOat 09 6 expected inflationfunds at 036expected inflationEDQuantity ofloanable funds. . What is the nominal interest rate if expected inflation is 09 ?b . What would the nominal interest rate be if theexpected inflation rate were - 296 ? ExplainC . What would the nominal interest rate be if theexpected inflation rate were - 6% ? Explaind . What would a negative nominal interest rate meanfor lenders ? How much lending would take place ata negative nominal interest rate ? Explain .. . What effect does a nominal interest rate of zero haveon monetary policy ? What is this situation called ?( 6 points )