Please provide precise answers....

Suppose the household chooses C, and C2 to solve the following maximization program given B ro, r1, Q1 and Q2 argmaxcc,|In(C1) + 3In(C2) subject to the intertemporal budget constraint (IBC) C2 Q2 C1+ = (1 + ro) By + Q1+ = Y 1+ r1 1 + r1On 1 January 2000 an investor purchased E10,000 nominal of a stock that pays coupons on 30 June and 31 December at the rate of 6% pa and is redeemable at par on 31 December 2012. The investor, who has no unused tax allowances, is liable for income tax payable at the rate of 40% on each 1 August in respect of coupons received during the previous calendar year. If the investor's net redemption yield on this investment is 5% pa effective, calculate the price paid for the holding. [5]Name Review: Explaining Relationships (Economic Ones, anyway) It is time to practice explaining the effects of certain changes or macroeconomic policies. There are just a few varieties: expansionary and contractionary fiscal policies, expansionary and contractionary monetary policies, rising and falling interest rates, etc. So it's essential that you remember these basic relationships. Directions. For each change, show the effect on the graph and explain the effect ina sentence or two. Remember to explain AD/AS shifts! Feel free to look at your notes and the lectures if you aren't sure, 1. Change: Increase in interest rates 3. Change: Decrease in the reserve rate by the fed Explanation: Explanation: 2. Change: Purchase of bonds by the Fed 4, Change: Rising inflation Explanation: Explanation: 5. Change: Sale of bonds by the Fed 7. Change: Tax increase Effect on interest rates. Effect on interest rates. 6. Change: Increase in government spending (with 8. Change: Lowering of the required reserve ratio no tax increase) from 20%% to 10% Effect on interest rates. Effect on interest rates