Problem 1 Read the article titled "China slashes banks' reserve requirements as trade war imperils growth" through the link below that talks about China's policy action after the new USMCA deaf. https://www.reuters.com/article/us-china-economy-mr-cut/china-slashes-banks-reserve- requirements-as-trade-war-imperils-growth-idUSKCNIMHORQ After reading the article, discuss and explain the following questions: a) How can the reserve requirement be used as a policy tool to tackle the impact of USMCA? b) What should be the impact of this policy by PBOC on Chinese Yuan and their future trade balance? How can a potential tax cut by the Chinese governments help their trade balance? Problem 2 (you can type this one) Read and discuss the following three news/blog articles within your group and write a 1,000- word essay on the "Effect of Russian-Ukraine conflict on the international trade and world economy". Make sure you use proper referencing Article 1: Holland, B. et. al. (2022). How War in Ukraine Threatens the World's Economic Recovery; can be accessed through https://www.bloomberg.comews/features/2022-02-25/war- in-ukraine-how-the-ukraine-russia-conflict-could-impact-the-global-economy Article 2: Hartman, M. (2022). Higher prices, more risk: How Russia's was on Ukraine is likely to affect the global economy; can be accessed through https:/ /www.marketplace.org/2022/02/24/higher-prices-more-risk-how-russias-war-on- ukraine-is-likely-to-affect-the-global-economy/ Article 3: Hoag, F (2022). Possible International Trade Consequences of Further Escalation of Conflict In Ukraine; can be accessed through https:/ /www.jdsupra.com/legalnews/possible- international-trade-8026838/ Problem 3 How Will the Rise in Interest Rate Affect Us? (this was in year 2018-2019) The Bank of Canada has hiked the interest rate for the first time in seven years. The increase will provide greater inventive for Canadians to save more, lead to a rise in mortgage rates, and Increase the cost of borrowing to invest. Source: The Huffington Post, July 18, 2017 a) Explain the effects of the Bank of Canada's interest rate rise on household saving and consumption and business investment. Draw a graph to illustrate your explanation. b) Explain the effects of the changes in household saving and consumption and business investment on aggregate demand. Would you expect a multiplier effect? Why or why not? () How would the predicted rise in mortgage rates change aggregate demand