COULD YOU ANSWER THIS EXERCISE FOR ME PLEASE.

4 - Use separate diagrams of your choice to illustrate and answer the following:

1. a)Is credit rationing good or bad for inequality? How? Why?
2. b)How are the concepts of willingness to pay (WTP) and willingness to accept (WTA)
3. related to the concept of deadweight loss (DWL)? If the market price increases because
4. of a new government policy (e.g. increase in taxes), how will the DWL change?
5. c)CanMarginalSocialCost(MSC)everbeequaltoMarginalExternalCost(MEC)?Ifyes, provide an example of a situation when MSC = MEC and explain why that is true. If no,
6. explain why MSC = MEC is something that cannot occur.
7. d)Does the central bank hold the monopoly on creating money? Why/why not? Show (by
8. illustrating) what happens to the balance sheet of the central bank when it prints new bank notes and buys government bonds with this new money.