For the following 5 short answer questions, note that the gross rate of return for money is given by Ut where n is population growth rate and z is the money supply growth rate. The rate of inflation is given by The social planner's budget constraint is given by C + = 02 Sy where y is consumption good endowment of a young individual. . Suppose the consumer's indifference curve has a slope equal to Ca 5CI and population growth is n = 1.20. If coff = 20 and call = 120, then what is y? Answer:. If money supply growth is z = 0.4 and n - 0.8, by reducing young age consumption by one unit and buying money with that unit, a consumer can increase old age consumption by 2 units. Yes or No? Explain why Answer:Suppose y = 100 and at the golden rule allocation we have col - 20. If n = 0.5, what is GR? Answer:. Suppose the rate of return on money is twice as high as the population growth rate. Then the monetary equilibrium attains the golden rule allocation. Yes or No? Explain why. Answer:. An increase in population growth rate n causes individuals to demand more money when young and reduce their young age consumption. Yes or No? Explain why