1. Now you want to obtain an econometric model from this specification . a) you Specify the Following functional form , 1 () = exp (-a Bi) Replace in the money demand equation, take loganthis equation and impose-equilibrium by setting M=Mid Call it equation b) By using the following change of variable, v= In s y- Inm (+ a-B,) Explain why the Following econometric model makes sense: (). Give the formulas for the estimates of a and B and WI- interpret . 2 fou take a summer Job at the Central bank of zealand. The governor of the Central bank leaves for a holiday right when you start working . you are in Charge of monetary policy over The next three months .. you want to learn something about money demand -fort are In Charge of you remember from Claw, Md= Sy26) a) Explain why money demand Is proportional to nominal income b ) How does money demand depend on ? Give economic explanation for this dependency ? 3 : the relationship between China and the United States is often A The news . To refresh the memory your memory here are four facts about China economy . China manages it's exchange rates with the dollar. China ruAs a trade surplus with The United States. bills . The Chinese Central bank owns a large number of US treasury Now evaluate the following claims below with 3 to s for each. you should also feel free to use graphs or equations where true at all, appropriate four goal Is to discuss why the Claim Is true, or notPart one Answer this first question- Using the information and skills learned this semester that surround Law allu Economics apply those skills to the current economic and legal situation in China.. Answer two of the following questions, each of the questions has an obvious answer-but the most points go to answers that go beyond the obvious and demonstrate a broad understanding of course readings, lectures, and concepts.. 1. What are the two strains of thought in Law and Economics? Which do you believe to be correct? Why?. 2. What is Law and Economics? Why do we study it? How is it different than either law or economics?. 3. Trace the basic structure of the US Legal System. How does that structure influence your understanding of Law and Economics. 4. What are Social Norms and How do they impact Law