Ronald Reagan introduced the concept of supply side economics during his administration in the 1980s. Explain the concept of supply side economics using your background in economics. Also, explain why Senator Bernie Sanders is an opponent of supply side economics. (10 marks)

Consider each of the symbols listed below: (a) 104xy (b) PIV (c) (d) (e) a yx Explain carefully the meaning of each of these symbols and calculate the value of each, assuming that: (x) is subject to a constant force of mortality of 0.01 pa (v) is subject to a constant force of mortality of 0.02 pa the lives are independent with respect to mortality [13] the force of interest is 0.04 pa.An investor purchases f100 nominal of a fixed interest stock, which pays coupons of 7% pa half-yearly in arrears. The stock is redeemable at par and can be redeemed at the option of the investor at any time between 5 and 10 years from the date of issue. The investor is subject to tax at the rate of 40% on income and 25% on capital gains. (i) Calculate the price that the investor should pay in order to obtain a net yield of at least 6% pa. [6] (ii) Given that this was the price paid by the investor, calculate his net annual running yield. [1] [Total 7]