(Answered) Read the article play around with prices is a bad idea and

Economics

Read the article "Play around with prices is a bad idea" and answer the following questions:

a) From consumers' point of view, is a negative interest rate bad or good?

b) Assume all your income is spent on two goods: mortgage (in which the price of mortgage is the interest rate) and a composite good (in which its price is $1). With the help of a diagram, explain how a negative interest rate affects your optimal basket of these two goods.

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