Provide answers to the following.,,,

The Congressional Budget Office projects a US federal budget decit of $200bn a month in 2021. The Fed has said it will buy at least $80bn a month of US government bonds in 2021. Using an appropriate model 'om our course, describe the effects of this policy mix in the short run and long run (assume this policy mix is permanent). Include all relevant graphs, mathematics and words in your answer. Describe the effects on as many macroeconomic variables as possible. An investor has two bonds in his portfolio that have a face value of $1,000 and pay a 10%% annual coupon. Bond L matures in 17 years, while Bond S matures In 1 year. a. What will the value of the Bond L be If the going interest rate is 5%, 7%%, and 117 Assume that only one more Interest payment is to be made on Bond 5 at Its maturity and that 17 more payments are to be made on Bond L. Round your answers to the nearest cent. 11% Bond L Bond S b. Why does the longer-term bond's price vary more than the price of the shorter-term band when interest rates change? I Long-term bonds have greater interest rate risk than do short-term bonds. Il. The change in price due to a change in the required rate of return decreases as a bond's maturity Increases. Ill. Long-term bonds have lower interest rate risk than do short-term bonds. IV. Long-term bonds have lower reinvestment rate risk than do short-term bonds. V. The change in price due to a change in the required rate of return increases as a bond's maturity decreases.1. Assume that the cost function associated with a given technology is different tiable. Show that average cost is rising (falling) as marginal cost is higher (lower) than average cost. 2. Consider a Cobb-Douglas Production function: f(x) = 1412 where a > 0, B > 0 and a + 8 0, B > 0 and make no assumptions on a + 3. (i) Derive the conditional factor demands hi(w, y) and hz(w, y). (ii) Find the 2 x 2 matrix of marginal price effects. Confirm the signs (and, where appropriate, relative magnitudes) of these effects. (iii) Find the cost function c(w, y). Confirm its properties. (iv) Sketch c(w, y) as a function of y for each of the three cases a + 3 > 1, a +