What is the slope of the consumption function called:

Discuss the assumptions of classical theory of employment. Discuss the two methods that are used to determine equilibrium of an economy. Under what conditions does the following occur; . Equilibrium at full employment level. . Equilibrium at less than full employment level. . Equilibrium at more than full employment level. In tabular form, discuss the causes of excess demand and deficient demand. Discuss the measures to correct deficient demand. Discuss the main implications of the classical theory of income and employment.A wealthy investor has just died. At the reading of his will, it is announced that his portfolio of securities and derivatives, all of which mature in five years' time, is to be divided among his three sons according to the following conditions: . The proceeds of the portfolio are only to be distributed after five years. . At that time, one of the three sons will inherit the entire portfolio. It will be: the youngest son if the FTSE is then below X the middle son if the FTSE is then between X and Y - the oldest son if the FTSE is then above Y . X and Y are to be set so that the market values of the three sons' shares in the portfolio are equal today. The portfolio consists of: a five-year European Put option on the FTSE with a strike of 3,000 a five year European Call option on the FTSE with a strike of 10,000 . a five-year risk-free zero coupon bond paying 10,000 after five years Market conditions today are as follows:the FTSE is at 5,000 the five-year risk-free rate is 5% per annum, continuously compounded the dividend yield on the FTSE is 2% per annum, continuously compounded FTSE option annualised implied volatilities are 20% per annum for all maturities and strikes (i) Verify either that the market value of the Put is 44.03 or that the market value of the Call is 142.13. [3] (ii) Derive values for X and Y that will meet the investor's requirements. [Hint: Consider the "payoff" structure to which each son is entitled in five years' time. You may assume that 3,000