Please answer the following questions.

Chapter 14: Financial markets . 1. Using the information in this chapter, label each of the following statements true, false, or uncertain. Explain briefly. i. In a bubble, the value of the asset is the expected present value of its future returns. k. Indexed bonds protect the holder against unexpected inflation. Question 2: f. Now look carefully at equation (14.15). Set zit = ilt +n = 0.05 for all n. Set x = 0.03. Compute the coefficients on $ Di + 3 and $Di+ 10. Compare the effect of a $1 expected increase in a dividend 3 years from now and 10 years from now. g. Repeat the computation in part f with zit = ilt +n = 0.08 for all n and x = 0.05. Topic: Phillips curve . 2. Discuss the following statements. 1. a. The Phillips curve implies that when unemployment is high, inflation is low, and vice versa. Therefore, we may experience either high inflation or high unemployment, but we will never experience both together. 2. b. As long as we do not mind having high inflation, we can achieve as low a level of unemployment as we want. All we have to do is increase the demand for goods and services by using, for example, expansionary fiscal policy